Dragged down by fierce competition among electric car peers, $Tesla (TSLA.US)$ The stock price fell about 1.4% on Monday, but the company's share price soared more than 6.6% on Tuesday after Tesla executives explained the latest developments in Tesla Semi Trucks.

Overnight on Tuesday, Tesla had the best performance among the seven US stock sisters. It rose 4.1% at the beginning of midday trading and finally closed up 6.66% to $186.60 per share.

The analysis notes that this increase was partly due to some positive developments at Tesla, such as the introduction of Semi Trucks and plans for a new plant. Also, good news from Chinese electric vehicle peers, such as $XPeng (XPEV.US)$ The announcement of first-quarter earnings that exceeded expectations also boosted Tesla's stock price.

Semi truck makes a new breakthrough and is expected to be delivered in 2026

According to reports, a Tesla executive introduced the Semi truck at a clean energy transportation fair in Las Vegas. He claims that thanks to Tesla's fastest charging technology, the Semi truck can drive 1,000 miles in 24 hours. Meanwhile, Tesla confirmed that it expects to begin delivering Semi trucks to customers by 2026. To this end, they plan to build a new plant in Nevada with a target annual production capacity of 50,000 vehicles.

Tesla executive Dan Priestley also shared some truck details. He mentioned that in terms of performance, the long-haul Tesla Semi can travel up to 500 miles when fully loaded (that is, the car is full of cargo, with a total weight of 23,000 pounds). The standard Tesla Semi can travel 300 miles without loading (the vehicle weighs 20,000 pounds).

Also, Tesla has conducted actual tests with PepsiCo's Fritolay division with 35 SEMI trucks. In testing, the trucks completed 250 and 520 miles of long-distance operation, and carried up to 82,000 pounds as permitted by law. Meanwhile, thanks to fast charging technology, these trucks can travel more than 1,000 miles in 24 hours.

So far, these test fleets have covered a total of 3.5 million miles. Tesla also uses these Semi trucks to ship batteries from Nevada to its main plant in Fremont during extreme weather and mountain conditions.

Positive news from Chinese peers helped Tesla's stock price rise

As competition in the industry intensifies, electric vehicle sales prices continue to decline, corporate profit margins are being compressed, and “bad news” for car companies will directly affect the company's stock price.

For example, previously, $Li Auto (LI.US)$ Earnings that fell short of expectations were announced. Ideal Auto's revenue forecast for the second quarter increased by only 6%, far below Wall Street's expectations. This indicates that increased competition has led to a drop in the price of electric vehicles in the Chinese market. As a result, Ideal Auto's American Depositary Receipts fell 13% on Monday. Tesla was also influenced by its Chinese counterpart. On the day after Ideal Auto announced its earnings report, Tesla's stock price fell 1.4%.

Price cuts are a problem Wall Street needs to face. CFRA analyst Aaron Ho downgraded the ideal stock rating from holding to selling, and wrote, “We have a neutral attitude on the fundamentals of ideal cars, mainly due to intense competition in the electric vehicle market, which limits the rise in average sales prices, while R&D and marketing expenses remain high.”

However, China's electric car peers have brought more than bad news. Among the new car builders, Xiaopeng Motor's US stock announced its financial report for the first quarter before the market. Losses were lower than Wall Street's expectations, gross margin increased, revenue was better than market expectations, and the performance guidelines were optimistic. The overall performance was unexpectedly good. As a result, Xiaopeng's stock price surged nearly 22% in early trading, and finally closed up 5.9%. Some analysts pointed out that due to this, Tesla's stock price also rose sharply overnight on Tuesday.

So far this year, the stock prices of Ideal Auto and Xiaopeng Motor have fallen by about 44% and 40%, respectively, and Tesla's stock price has dropped by about 25%.

Editor/Somer