Search
EN Down
Language
Hi, user_no_name
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

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

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

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

Gold price gains ahead of US PCE inflation release

Monday, 27 May 2024

Indices

Gold price gains as focus turns to US inflation data

US dollar slated to remain firm over Memorial Day weekend

Friday, 24 May 2024

Indices

US dollar holds firm as traders trim Fed rate cut bets

OPEC meeting in focus for traders this week

Thursday, 23 May 2024

Indices

Week ahead: Oil traders eye next OPEC meeting, big inflation week

Chances of interest rate cuts fall across the board as markets take a breather

Thursday, 23 May 2024

Indices

Markets take a breather as interest rate cut chances fall

Live Chat