Shares of Tesla Inc. (NASDAQ:TSLA) experienced a remarkable 12% increase on Wednesday, marking the strongest session for the electric vehicle (EV) maker since January 2022.
This surge occurred despite the company’s Q1 2024 earnings falling short of Wall Street expectations in both earnings and revenue. Investors were seemingly encouraged by Tesla’s commitment to launching more affordable models, aiming to broaden its market reach and potentially boost future revenues.
Adding to the positive sentiment, Tesla received an important endorsement from Bank of America, which upgraded its rating on the stock from Neutral to Buy. Analyst John Murphy highlighted Tesla’s ability to address recent challenges effectively.
He noted that although the company faced slower volume growth, lower prices may offer more demand incentives, and while margins are expected to be hit, cost-saving efforts have led to better-than-expected results.
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Additionally, Murphy underscored …
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