Tesla Motors Experiences Increase In Stock Value Followed By Balance In Chinese Market
The auto making giant has experienced a much needed rise in the stock value following the improvements shown by the Chinese stock market.
Following the fall in the stock market that was faced in China a few weeks back, all the companies in the industry faced a somewhat difficult position in the market as stocks went down massively. Auto companies on a general level were also affected which is why the latest Tesla news took attention of the analysts who were keeping a close look on the activities of the hybrid car makers.
The car makers went right up in the stock market by a huge 2.35 percent right after Labor Day on Monday which boosted up the share price of the electric car makers to $247.61. In the pre-market values, the rise was recorded at 1.5 percent, a change in the stock that is sure to give the other auto makers a difficult time on an overall level.
More importantly, the Tesla stock is being taken as one of the very few companies who have regained their position in the market after economic downturn that was faced by the economy of China. The losses that were recorded on the S&P 500 were actually around 1.53 percent and the increase that was experienced came around at being only at 0.22 percent, but that too is being taken quite positively by the stock market as changes of that value did not occur in any other firms in the industry.
Following the Labor Day, there was improvement also observed in the Chinese market in which the Shanghai stock went aggressively up by 2.92 percent. In order to make investments for the longer period of time better, the government of China was also seen to cut down on the taxes that were being charged on the dividend income of the investors. Since this was one of the factors that were putting them off from making huge investments, the government made sure that all such issues are looked after in the best possible way. To encourage them, the government has made sure no such taxes are taken anymore for all such investors which will be in possession of stock for a period of 12 months or more.
This was one of the major reasons why the stock market of the United States of America went up too, and a massive rise of 1.98 percent was seen on the Dow Jones journal while the S&P 500 experienced a rise of 2.06 percent. On the other hand, this increase in the stock value is being taken as a positive by analysts for auto companies all around the industry, giving them a wider market to carry out their trades in.