By
Bena Ilyas
April 23rd, 2024
Tesla (TSLA) stock is slightly down in the pre-market. The company said that its operations are returning to be practically normal in the Fremont factory.
Tesla, Inc (NASDAQ: TSLA) stock is down 0.36% in premarket to trade at around $824.60, after closing yesterday with a 1.48% rise. The company was attempting to break through the $820 level, which has been a strong resistance zone in the past few weeks. However, several fundamentals are working for the rise of the shares, despite the COVID-19 crisis while Tesla was trying to restart normal operation.
Investors feel confident with Elon Musk and his leadership, hence the continued rise in the market price. In the past one month, the shares have added around 17.29%, and chances are high they will retest its all-time high at $968.99.
According to data provided by MarketWatch, the company shares have a market capitalization of over $153 billion. Analysts are anticipating the shares to continue with the rise, supported by the increase in demand for its products and the bright future its company has.
If the market price breaks out to the upside at the current state, it will be a new wave of a bull rally that might see the shares double its ATH. However, if its operations in the factory are hampered by the unpredictable COVID-19 outbreak, a reversal might be preparing.
Tesla Announces Normal Operation in the U.S.
According to a post on CNBC, Tesla’s HR boss, Valarie Workman sent out an email to all employees notifying them that the Tesla is returning to normal operations at Fremont this week.
This means the company’s attendance is expected to be to the capacity by Friday. However, for those employees who want to stay at home due to fear of contracting the coronavirus, the company is advising them to file paperwork describing the situation to the HR manager. This will facilitate them to be approved for their unpaid leave, whereby they can take the leave through the end of May.
However, the company is exempting employees on special conditions. The memo reads:
“If you are under Tesla-or-doctor-directed quarantine, are sick with Covid-19 symptoms, you are not subject to the Attendance policy and should continue to stay at home”.
In a bid to keep the employees safe from the coronavirus, the company said it will provide masks and also check body temperature on the workers regularly. This will happen as employees report to work daily at the entrance door.
With the company operating on a full scale, its quarterly revenue report is anticipated to steadily rise. However, with the demand for its product falling in the China market, the company will have to bring down its prices to compete with other EV assemblers.