Why Tesla Stock Popped 7% on Monday Morning

Tesla (NASDAQ: TSLA) stock raced ahead by 7% through 10 a.m. ET Monday after Bloomberg reported that the incoming Trump administration wants to enact "a federal framework for fully self-driving vehicles." CEO Elon Musk has repeatedly said that he considers artificial intelligence (AI) and autonomous driving technology the keys to Tesla's future growth. Investors are hoping that with government backing, this will turn into a winning bet.Tesla builds electric cars. Problem is, profit margins on electric cars have fallen as early adopters have made their purchases and demand elsewhere in the market has dwindled. Tesla's gross margin has fallen from better than 25% in 2021 and 2022 (roughly twice what Ford and GM were earning) to just over 18% in the past 12 months, according to data from S&P Global Market Intelligence. And with competition mounting as more and more companies field electric alternatives, it's unlikely Tesla's EV business alone will regain its former profit margins.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool