By Tesla’s shares experienced a boost on Thursday, following a previous session where they closed down by 2.24% at $187.96. The stock’s upward movement was prompted by Tesla CEO Elon Musk’s announcement on Twitter that the company will hold a shareholder vote to determine whether to relocate its incorporation to Texas.
In other news, a Delaware court recently invalidated Musk’s pay package, which granted him approximately 300 million options tied to performance milestones. The consequences of this ruling, which essentially nullifies Musk’s $55.8 billion pay package, could have far-reaching implications for other companies across corporate America.
This positive shift in Tesla’s stock also coincides with the Federal Reserve’s recent decision. While interest rates remained steady as expected, Chairman Jerome Powell cautionarily stated that a rate cut in March was “probably not the most likely case.” As a result, on Wednesday, the Nasdaq Composite — heavily influenced by tech stocks — experienced its largest daily decline since December 2022, with a 2.2% drop.
Before Thursday’s trading session began, Tesla’s stock rose by 1.8% in premarket trading. Nasdaq futures also showed promise, indicating a 0.6% increase. Despite a 21.5% decrease in Tesla shares over the past month, the S&P 500 and Nasdaq Composite have demonstrated gains of 3.4% and 4.5%, respectively.
While Tesla still trails behind its 52-week high of $299.29 attained last summer, other electric vehicle manufacturers are also observing an increase in their stocks during Thursday’s premarket trading. Lucid saw a 3% rise in shares to $3.48, GM experienced a 0.4% increase to $38.95, NIO in Hong Kong jumped 2.7% to $5.77, and BYD rose by 0.6%.
It is worth noting that the trading volume upon closing stood at 103.2 million shares, which is 14.5 million below its 50-day average volume of 117.7 million.
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