Oil Prices Soar Amid Tensions, Tesla Stock Jumps 4%
Tesla's stock price surged 4% to $364.30 due to rising crude oil prices, which reached $86.06 per barrel amid renewed US-Iran military tensions affecting shipping routes.
Higher gasoline prices typically boost electric vehicle demand as EVs become more cost-effective to run. However, recent Tesla demand is linked more to product features like Full Self-Driving than fuel prices.
This oil price spike revives the EV running-cost argument, but past episodes show this link can be short-lived. Investors are advised to remain cautious as the rally may reverse if geopolitical risks ease.