Tesla shares pointed higher in Wednesday's premarket session, building on a three-day winning streak. The stock was up roughly 1.5% before the opening bell after adding 0.46% on Tuesday.
The rebound follows a sharp pullback of more than 10% after last Thursday's midterm election results, which raised concerns among investors about heightened scrutiny of CEO Elon Musk. The shares have since recovered over two consecutive sessions.
Finland clears Tesla's assisted driving system
Finland's transport authority, Traficom, approved Tesla's assisted driving technology for use on Finnish roads on Wednesday. The system can steer, accelerate and brake automatically while the driver remains responsible for supervision. To secure the approval, Tesla renamed the feature from Full Self-Driving and tightened speed controls.
The decision is a notable step for Tesla, which is pursuing broader approval across the European Union. A vote on the matter could come at the next meeting, scheduled for December. Estonia, Croatia and Belgium are among the European countries that have already permitted the technology.
Tesla's European sales have been recovering this year, with registrations climbing across key Northern European markets in October.
Robotaxi network adds San Antonio
Earlier this week, Tesla launched its Robotaxi service in San Antonio, Texas, marking the eighth city in its network and its fifth in the state. Austin, Dallas, Houston and Fort Worth are already on the list, alongside Miami, Orlando and Tampa in Florida.
Musk also said last week that Tesla would end production of its Cybertruck electric pickup and redirect resources toward Robotaxi. The company plans to stop Cybertruck output by mid-2027 after sales of the pickup fell short of Musk's earlier projections.
SEC seeks to close 2018 settlement fund
In a separate development, the U.S. Securities and Exchange Commission said Tuesday that it had completed distributions from a $40 million settlement fund created from civil fines paid by Musk and Tesla in 2018. The fund was set up to compensate investors after the SEC's securities fraud case against Musk over his August 7, 2018, tweet claiming he had "funding secured" to take Tesla private.
The post briefly lifted Tesla's share price and trading volume before the stock fell once it became clear the financing had not been secured. Musk and Tesla each paid a $20 million civil fine to settle the case, without admitting wrongdoing. In a filing in Manhattan federal court, the SEC asked a judge to formally close the Fair Fund now that distribution is complete.
Market backdrop
Broader market gains also supported Tesla, with futures tied to all three major indexes pointing to a positive open. The combination of regulatory progress in Europe, expansion of the Robotaxi footprint and the resolution of a long-running investor compensation matter gave traders several catalysts to work with.
This article is for informational purposes only and does not constitute financial advice.
