Live Chat

Tesla stock falls as US CPI comes in hotter than expected

Tesla stock declines after hotter-than-expected U.S. inflation report

Tesla stock dropped on Wednesday following the release of March's consumer price index (CPI) in the U.S., which came in hotter than expected.

The CPI showed a 3.5% increase compared to the previous year, above the 3.4% economists had predicted. This uptick in U.S. inflation suggests that interest rates could remain elevated for a more extended period, potentially leading to more expensive car loans for prospective buyers.

For investors in the automotive sector, interest rates are the primary factor when analyzing monthly CPI data. The report showed a marginal 0.1% decrease in new car prices year-over-year. “Investors don’t get their most current car pricing information from the Bureau of Labor Statistics. Still, the decline is another small bit of bad news in the current report”, wrote Barron’s correspondent Al Root.

Used car prices dipped 2.2% compared to the previous year.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

CPI report puts pressure on U.S. automotive stocks

The CPI report exerted downward pressure on several automotive stocks. Tesla stock fell by 2.89%, with the S&P 500 index and Nasdaq Composite indices also dipping by 1% and 0.84%, respectively.

Shares of Ford Motor Co. and General Motors Co. also saw declines of 3.55% and 1.77%, respectively.

At the time of writing on Thursday, Tesla stock was down 0.6% in premarket trading at $170.72. The company’s shares have shed close to 31% of their value since the start of the year.

Musk tweet momentum drives Tesla stock before CPI setback

Wednesday’s dip was a setback for Tesla bulls who had anticipated a third consecutive day of gains. On Tuesday, Tesla shares closed at $176.88, marking a second day of gains and coming in higher than the price before the company released a disappointing Q1 earnings report.

Before the CPI report was released, Tesla stock was on the rise early Wednesday. TSLA shares appeared to be supported by Elon Musk's tweets, even though several Wall Street analysts had cut their price targets for the company’s stock.

The Tesla CEO tweeted twice on Friday. Musk first denied a Reuters report claiming the company would halt the development of a more affordable vehicle, tentatively referred to as the Tesla Model 2, and later announced an upcoming robotaxi reveal on August 8.

Tesla's market value increased by about $50 billion from Friday's low, leading up to Tuesday's trading, with shares reaching over $178 in premarket activity.

This rise occurred despite analysts Alexander Potter of Piper Sandler and Philippe Houchois of Jefferies lowering their Tesla stock price targets.

Potter reduced his target to $205 from $225, maintaining a Buy rating, despite Tesla's first-quarter deliveries falling short by approximately 20,000 units against Wall Street's lowest forecasts.

Houchois adjusted his target to $165 from $185, anticipating additional "drama" in the first-quarter results due on April 23, and rated Tesla stock a Hold.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 20 November 2024

Indices

MicroStrategy Stock Surges as Bitcoin price rises to fresh record above $94K

Wednesday, 20 November 2024

Indices

Nasdaq futures decline, Nvidia shares dip following the earnings report

Mixed market performance

Wednesday, 20 November 2024

Indices

Markets Mixed Amid Inflation, Tech Rally, and UK Economic Woes

Tuesday, 19 November 2024

Indices

Nvidia shares rallied on AI spending ahead of Nvidia Q3 earnings 2024

Live Chat