- Tesla jumped as much as 3.8% on Monday after the CEO Elon Musk reached an agreement with the Securities and Exchange Commission.
- Shares were on track for their best one-day performance since April 1.
- The stock ended Friday’s session at its lowest level in more than two years after breaking below key support earlier in the week.
- Watch Tesla trade live.
The electric-car maker’s stock jumped more than 3%, placing it on track for its best one-day performance since April 1, when it gained 3.33%. At session highs, Tesla was up 3.8%.
The gains came after a brutal week for the stock, culminating in an after-hours announcement on Friday that said CEO Elon Musk and the Securities and Exchange Commission had reached an agreement over his behaviour on social media.
On Thursday, Tesla shares cracked below $US250 apiece after the company reported a larger-than-expected first-quarter loss. The stock’s move below $US250 was interpreted negatively as that level has proven to be reliable support over the last two years. Indeed, it gave way to more selling on Friday, which pushed shares to a more than two-year low of $US231.13.
“More negatives than positives in Q1 as Tesla swings back to a sizable loss & FCF burn, putting greater emphasis on the need to bolster balance sheet cushion, in our view,” Citi analyst Itay Michaeli wrote in a note to clients on Wednesday.
Tesla was down 27% this year through Monday.
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