What's Driving Tesla Shares Higher Premarket Tuesday?

Shares of electric vehicle maker Tesla, Inc. TSLA were seen extending their gains in premarket trading on Tuesday, as the market reopens after a long weekend on account of the “Memorial Day” holiday.

In pre-market, the stock rose 2.45% to $197.92, according to Benzinga Pro data.

After a lackluster phase seen since mid-February, Tesla’s stock began to turn the corner in May. The stock is coming into the session with two consecutive days of gains.

The positive sentiment seen ahead of Tuesday’s session is in line with the broader market mood, which received a shot in the arm from a tentative budget deal negotiated between President Joe Biden and House Speaker Kevin McCarthy (R-Calif).

Reports that Tesla CEO Elon Musk is in China to have discussions with senior government officials in the country and visit the Giga Shanghai plant, a vital cog in Tesla’s wheels, could also be driving shares higher.

This would mark the first time Musk is visiting China after the outbreak of the COVID-19 pandemic.

See Also: Everything You Need To Know About Tesla Stock