The Tesla share had recently slumped – to the delight of short-sellers. Now the stock is taking off again. The reason for the upward price is probably the same as that which is driving the bitcoin price.
Over the past four weeks, Tesla’s share price has fallen from just under $850 to as low as $550. But that’s after a near-unprecedented 2020 rally that had made Tesla the most valuable automaker and CEO Elon Musk the richest person in the world. The sharp drop saw the electric carmaker lose around $277 billion in market capitalization. Currently, however, things are looking up again.
Tesla share: Strong gain after slump
On Monday, the Tesla share had lost another 6.5 percent, but on Tuesday, the stock was marked by a – possibly only temporary – recovery. In the early afternoon of Tuesday, New York, the stock posted a strong gain of up to 18 percent on the Nasdaq tech exchange. The stimulus for this renewed price explosion could be the same as currently driving the bitcoin price up the 1.9 trillion dollar aid package passed in the US.
The federal government is funding U.S. electric carmaker Tesla to the tune of billions of euros. This was reported by “Businessinsider” at the beginning of the week, citing insiders from government circles. Tesla’s application for the “IPCEI” funding program of the Federal Ministry of Economics seems to have paid off.
Specifically, the battery cell factory in Grünheide is receiving funding. In addition to Tesla, 10 other companies are receiving funding. According to Businessinsider, the IPCEI program was once initiated to support European companies in key technologies so that they could take on the Chinese and U.S. competition – now, however, possibly the biggest competitor of Volkswagen, BMW & Co. will be awarded the contract.
The specific amount of funding is not yet known. However, several sources in government circles have reported that the amount is in the “single-digit billions.
The federal government is providing two-thirds of the funding and the state of Brandenburg one-third.
Production at the Gigafactory in Grünheide is scheduled to start in July. Production will include Model 3 and Model Y vehicles as well as various batteries and powertrains.