Tesla (TSLA) stock is in the green now. Tesla, GM, and Ford have been given the go-ahead to ramp up the production of ventilators used in the treatment of coronavirus patients.
Tesla Inc (NASDAQ: TSLA) stock is now trading at $433.91 which indicates a 1.49% growth. Previously, the stock closed at $427.53 after retesting the all-time lows. A closer look at the market chart on the higher time frame, the free fall might not be over for the electric auto car maker. The fall comes a time when the coronavirus is leveling up its gears on the spread in the United States.
Go Ahead for Tesla and the Rest to Make Ventilators
As a result of the high number of infected people and the fast rate of spreading of the virus, President Donald Trump asked General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F) and Tesla to come into rescue by producing much-needed ventilators.
Ford, General Motors and Tesla are being given the go ahead to make ventilators and other metal products, FAST! @fema Go for it auto execs, lets see how good you are? @RepMarkMeadows @GOPLeader @senatemajldr
— Donald J. Trump (@realDonaldTrump) March 22, 2020
Although the number of infected people worldwide has been rising since the virus broke china borders, the number of people who have recovered is high and motivating. Almost 100, 000 people have been infected and recovered from the virus.
However, the number of those still carrying the virus is still high, approaching the 350,000 mark at the time of writing. Elon Musk previously tweeted that he had a fruitful discussion with Medtronic on the production of ventilators. His sentiments were backed by Medtronic through a tweet, which confirmed they are collaborating to provide tools needed in the treatment of the virus.
Ventilators are critical medical equipment needed to help patients hospitalized with coronavirus. This is because the virus attacks the lungs, making it difficult to breathe for the patients. There are about 160,000 ventilators in the United States, while the National strategic supply holds 12,700 more.
Will Tesla (TSLA) Stock Regain after the News on Ventilators Production?
There are a number of factors that have led to the free fall of Tesla stocks this year. Majorly, the coronavirus has been a huge stumbling block to the company that focuses on electric car production. During the early times of the coronavirus outbreak in China, the company was compelled to shut down its Shanghai Company. As a result, the production of units was delayed by months.
The company has also been significantly hit by low oil prices since Saudi Arabia and Russia disagreed on oil production. As a result of negative news to the company, Tesla stocks have been decreasing by the day. However, the news to start the production of ventilators may give investors hope to buy the stock again. With time if that is actualized, the stock may rise up to retest the all-time highs.