Tesla stock dropped due to potential vehicle recall, but rebounded on AI investments, positive.

From Nasdaq: 2024-07-31 12:55:17

Tesla (NASDAQ: TSLA) shares dropped over 4% due to a potential vehicle recall, but rebounded today by 3.6%. The recall affected 1.85 million EVs, with only 1% at risk of unintended hood openings, which Tesla is addressing with software updates. Investors refocus on Tesla’s AI investments, despite recent recall news.

Elon Musk emphasizes Tesla’s increased spending on AI technology, including self-driving vehicles and humanoid robots. Tesla invested $600 million in AI infrastructure in Q2 alone. With tech companies highlighting AI developments, investors see the potential benefits for Tesla, outweighing concerns about the recent recall of vehicles.

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Read more at Nasdaq: Why Tesla Stock Is Bouncing Back Today