Tesla Shares Spiked On Rumors Of An Electric Car Tax Rebate
Tesla Motors shares jumped to finish more than 6 percent higher Tuesday, on speculation that electric car buyers could be motivated by a new tax rebate.
Tesla stock [ TSLA 24.49 +1.42 (+6.16%) ] spiked from around $23 to nearly $25, an increase of more than 8 percent in early afternoon trading, as the speculation first circulated.
The stock’s move was attributed to a Senate bill proposing a $7,500 rebate to buyers of electric vehicles, as opposed to a tax credit. The idea isn’t new, as it has been floated in Congress previously, without gaining significant traction. But this time, there is speculation that it could take hold.
The U.S. Department of Energy released a report Tuesday affirming that President Obama’s goal of putting one million electric vehicles on the road by 2015 is achievable. This is opposite last week’s analysis from a group of industry leaders, who said the current production of automakers falls short of Obama’s goal.