Tesla Chief Executive Elon Musk me Friday with French President Emmanuel Macron, the second time in a little more than a month, as competition to site another Tesla plant in Europe heats up. TSLA shares advanced Friday after declining for two sessions.
Launching a busy week for diplomacy, the Tesla CEO attended the Viva Tech annual conference in Paris on Friday. During his Europe tour, Musk visited with Italy's Prime Minister Giorgia Meloni and Deputy Prime Minister Antonio Tajani Thursday.
Jockeying for a second Europe Tesla plant appears to underway. Reuters reported earlier this month TSLA is in talks to make an "automotive investment," possibly a vehicle plant, in Valencia, Spain. Other reports circulated in June said Tesla has agreed in-principle with a plan to set up a manufacturing plant in India. Tesla has not confirmed any plans for a new manufacturing facility in Europe or India.
Macron tweeted a photo with Musk Friday morning.
"Let's work together! #ChooseFrance," Macron wrote.
Tesla officially opened its Berlin-Brandenburg gigafactory in March last year. Tesla's plans to expand its Shanghai facility also reportedly face roadblocks, with China concerned about EV overcapacity and the price war started by Tesla, Reuters reported Friday.
Meanwhile, China Premier Li Qiang also heads to Europe this weekend, with stops in France and Germany. It will be Li's first overseas visit since becoming premier in March.
Li's visit to Europe follows calls from President Macron for Europe to prioritize its "strategic autonomy," and avoid being dragged into U.S./China tension over the Taiwan issue. Macron has also called for China to use its influence to press for peace in Russia's war on Ukraine.
In addition, Li leaves China jest as U.S. Secretary of State Anthony Blinken arrives in Beijing Friday to address heightened U.S-China tensions. Blinken canceled his prior visit, scheduled for February, after a tech-laden, China-based observation balloon was discovered flying over the U.S.
Tesla Stock
TSLA advanced 1.8% t0 260.54 Friday during market trade. On Thursday, shares fell 0.35% to 255.90 after slipping 0.74% Wednesday, snapping a run of 13 straight gains. Shares are up around 140% in 2023 and nearly 28% in June. However, Tesla stock is down around 37% from the all-time high of 414 it hit in November 2021.
TSLA jumped more than 6% this week despite two straight declines.
Tesla stock is well extended past a 207.79 buy point from what's either a cup or a double-bottom base. Shares are more than 30% above their 200-day/40-week moving average. That's the most extended they've been since the stock marked its peak in November 2021.
The global EV giant announced early Friday deliveries of the luxury Model S and Model X vehicles are officially underway in South Korea. Tesla previously only offered the Model 3 and Model Y in the country.
In the U.S. Tesla appears to be trying to move Model 3 inventory. On Wednesday, the EV giant began offering customers who order a Model 3 between June 14-June 30 three-months of unlimited free supercharging, according to the company's website.
In China, Tesla appears to be offering insurance subsidies on Model 3 vehicles. From June 16 to June 30, costumers in China who buy and complete delivery of an inventory Model 3 rear-wheel drive vehicle will be eligible for an insurance subsidy of about $1,120, according CnEVPost.
Tesla ranks third in IBD's automaker industry group. It has a 98 Composite Rating out of 99. Tesla stock has a 90 Relative Strength Rating and its EPS Rating is 93 out of 99.
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