$Tesla (TSLA.US)$ shares are down Monday as auto-related stocks decline due to broader market weakness and concerns about a potential U.S. economic slowdown. Here's what you need to know.
What's Going On: The U.S. economy is facing mixed signals from recent data releases. While the Federal Reserve hinted at a possible rate cut in September, disappointing manufacturing data and a spike in jobless claims have raised alarms about the health of the economy. The tech-heavy Nasdaq Composite and other major indices have also suffered. As one of the prominent stocks in the Nasdaq, Tesla has been directly affected by this downturn.
The broader economic landscape is also impacting Tesla. Concerns about a U.S. economic downturn have intensified, with key indicators suggesting potential trouble ahead. The recent global equity market sell-off, triggered by Japan's economic actions and fears of a cyclical downturn, has added to investor anxiety. Notably, the CBOE Volatility Index (VIX) has spiked over 100%.
Recent political developments: Former President Donald Trump, following Tesla CEO Elon Musk's endorsement, has shifted his stance on electric vehicles (EVs), praising them despite his usual criticisms. Trump emphasized the importance of maintaining a diverse vehicle market that includes hybrids and gas-powered cars, alleging that Democrats want to go all-electric. Musk, meanwhile, continues to highlight Tesla's market challenges, noting that competitors selling EVs at a loss are not a long-term threat.
TSLA Price Action: Tesla shares were down by 4.06% at $199.08 at the time of writing, according to Benzinga Pro.
