Why Tesla Stock Is Higher In Pre-Market Today After 5-Session Losing Streak

Tesla Inc. TSLA shares appear to have stemmed the slide on Friday.

What Happened: After the 64.4% plunge thus far this year, the stock advanced 1.79% to $127.60 in premarket trading on Friday.

The strength reflected a few comments from Tesla CEO Elon Musk on a Twitter Space call late on Thursday.

Giving his takeaways from the call, Gary Black, co-founder of Future Fund, said Musk assured that he wouldn’t dispose of any more Tesla shares for the next 18-24 months.

See Also: How to Invest In Tesla Stock

The recent sale, according to Musk, was due to the intention of having some “dry powder” in the eventuality of things worsening.

Musk said Tesla is executing near flawlessly, adding that the electric vehicle maker is better prepared for the impending economic storm than any
other company making complex manufacturing objects.

Tesla’s board is open to considering a buyback depending on the severity of the recession, Musk said. He currently anticipates a 2009-like recession in the upcoming year.

The company is close to announcing its next Gigafactory, Musk added.

Meanwhile, Tesla bull and Wedbush analyst Daniel Ives said in a note that Tesla’s near-term estimates face risk amid slowing demand, inventory buildup, production issues and Musk’s Tesla stock sales.