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Electric car stocks got an early boost after General Motors (GM) said Monday it would suspend litigation backed by the Trump administration against California.
The state had pushed to be allowed to set its own emission regulations, and the Biden administration is expected to drop the suit.
GM has its own plans to build electric and autonomous cars and announced last week that it was would boost spending to $27 billion on the effort over the next five years.
Shares climbed 6.4% to close at 555.38 on the stock market today. Tesla stock is now extended just beyond buy range after breaking out of a cup base with a 527.71 entry point. It is also extended from a handle buy point of 466. Tesla is an IBD Leaderboard stock. and is the top-ranked stock in IBD’s Auto Manufacturers Group.
CEO Elon Musk also announced at a European battery conference Monday that the company would release its newest beta version of its full self-driving technology within a “few days.”
And he hinted again that the electric car company could produce a hatchback out of its German operations. He had first mentioned the possible new car over the summer.