Tesla Bucks Trend With Premarket Gains Wednesday: What's Going On

Tesla, Inc. TSLA shares rose in premarket trading on Wednesday even as stock futures point to a lower opening by the major indices.

The upward bounce could be partly due to tech giant Apple, Inc.’s AAPL decision to pull the plug on its self-driving car project. Commenting on reports of Cupertino giving up on its electric vehicle ambition, Wedbush analyst Daniel Ives said it could be seen as an acknowledgment of Tesla’s invincible position.

“We also believe this is an indirect nod to EV leader Tesla with Apple recognizing that the stronghold grip on the EV market would make it very difficult for Apple to emerge as a very successful OEM (even with a partner),” the analyst said.

“Softer EV environment and price wars also key factors,” he added.

Separately, Tesla CEO Elon Musk provided an update on Tesla’s Roadster. The billionaire said the company is ramping up specs on the new Tesla Roadster with the help of his rocket manufacturing company, SpaceX. He said the company is now looking to start delivering the sports car in 2025.

Tesla stock has gathered some upward momentum this week, rising 3.9% on Monday and a more modest 0.17% on Tuesday. The stock is still struggling to move above the $200 barrier sustainably. The immediate resistance past the $200 mark could be around $207 – a level from which it gap-opened down following its fourth-quarter earnings miss.

Wednesday’s stock move could also depend on a few economic catalysts slated for the day.

In premarket, Tesla rose 0.43% to $200.58, according to Benzinga Pro data.

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See Also: Everything You Need To Know About Tesla Stock