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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Stock of the day: Tesla

Tesla’s 15% stock surge highlights how traders can leverage volatility by following geopolitical trends, AI innovations, and growth strategies.

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This video was created on 7 November for IG audiences by ausbiz.

ASX code: TSLA

Navigating market volatility

In stock trading, volatility presents both challenges and opportunities. Understanding how to leverage market volatility can significantly impact trading outcomes. Tesla's recent 15% stock surge following political developments highlights the importance of staying informed on geopolitical events and their market impacts.

Traders can capitalise on such volatility using strategies like options trading, which enable profit from rapid price movements without holding the underlying asset.

Tesla's growth opportunities

Tesla's growth potential interests many traders. Despite geopolitical uncertainties, like potential trade tensions with China, Tesla continues to expand its footprint. With a significant portion of its deliveries coming from China, strategic decisions, such as expanding Gigafactory operations in Shanghai, are crucial.

These moves bolster Tesla's production capabilities and highlight the importance of understanding international market dynamics. Traders should closely monitor Tesla's global strategies and their influence on stock performance.

Role of AI and robotics in Tesla's future

As Tesla evolves, its focus shifts towards artificial intelligence (AI) and robotics. This transition is not just about manufacturing efficiencies but also about positioning Tesla as a leader in AI. Developing autonomous driving technology is a key area where Tesla invests heavily, aiming for full autonomy soon.

For traders, this represents a significant growth avenue, as advancements in AI could redefine Tesla's market valuation and open new investment opportunities. Understanding these technological advancements is essential for traders looking to anticipate and react to market changes.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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