Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Tesla is facing increased competition in the electric vehicle market, particularly in China, where Stellantis-backed Leapmotor has introduced a new luxury SUV model that could undercut Tesla’s Model Y L in price. This development comes as Tesla’s sales in China showed signs of recovery, with a 2.8% increase in September, driven by the demand for its six-seater Model Y SUV. However, the entry of Leapmotor and other competitors like Xiaomi into the premium segment could pressure Tesla’s market share.
Additionally, Tesla is dealing with internal challenges as Institutional Shareholder Services (ISS) advises investors to vote against CEO Elon Musk’s $1 trillion pay package, citing concerns over its structure and Musk’s focus on Tesla. This comes amid a new bearish rating from BNP Paribas Exane, which suggests a significant downside for Tesla’s stock, questioning the valuation based on future AI-driven businesses that currently generate no revenue. Despite these challenges, Tesla’s stock remains volatile, with analysts divided on its future prospects.