Tesla CEO Musk’s upbeat tweets about China boost stock




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(Reuters) – Elon Musk, the widely followed chief executive electric maker TeslaMotors Inc, tweeted several optimistic statements about the company’s sagging Chinaoperations on Monday, sparking a sharp rebound the company’s stock.

On his Twitter feed around midday, Musk said that he “very optimistic about Tesla’s long-term future in , despite earlier mistakes.”

He also tweeted that he visited Chinese President Xi Jinping and other officials and expressed “great faith” in Tesla’s embattled team in .

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Tesla rose 3 percent to $190.60 after trading earlier in the day as low as $181.80, near its 52-week low $177.22.

In one his tweets, Musk said the company to unveil “a new Tesla product line — a ” on April 30 at its southern California design studio.

The announcement will involve a Tesla-branded storage battery for the , according to a source familiar with the . Musk previously announced the battery in February during a year-end earnings briefing.

The company’s stock has been battered this year by investors concerned about the automaker’s failure to hit sales targets in and the departures last year of two top Tesla executives in that country.

In February, Reuters disclosed that Musk prepared to overseas executives after weak Chinese sales cast doubt on his ambitious expansion , according to people with knowledge of the matter.

Tesla had slumped in mid-January.

“We’ll fix the China issue and be in pretty good shape probably in the middle of the year,” Musk said at the time.

In an internal email to Tesla managers in late January, Musk threatened to or demote country managers if they are “ on a clear path to positive long-term cash flow,” according to two people who had seen the email.