US markets closed lower as Tesla’s Investor Day failed to excite
After a weak session on Wall Street, Tesla’s share price falls in after-hours trading as Investor Day fails to excite.
Key US equity markets closed lower overnight after another round of hawkish Fed Speak and higher-than-expected German inflation combined to send US two-year yields to a fresh cycle high of 4.90%.
Unsurprisingly, in an environment of higher interest rates and inflation concerns, the Nasdaq was the worst-performing index falling -0.87%.
However, this masked a brutal session for EV makers.
Following the disappointing earnings reports this week, Rivian fell 18.34%, Workhorse fell 14.81% to $1.76 and Nio fell 5.96%.
Tesla fell by 1.43% to $202.77, holding its ground ahead of its highly anticipated Investor Day, which kicked off shortly after the market closed.
What has the Tesla Investor Day unveiled?
The Tesla Investor Day is underway at the company's Austin, Texas, Gigafactory. Tesla CEO Elon Musk has outlined that the next phase of Tesla's growth, or Master Plan 3, will be built around sustainable energy and has reiterated that "all cars will be fully electric and autonomous."
Musk spooked investors when he stated that his Master Plan 3 for sustainable energy would require an investment of $10 trillion causing Tesla shares to fall 5.5% in after-hours trading to $191.60.
At this point, no new car has been announced, disappointing some who were looking for Tesla to bring a more affordable vehicle to the market.
In other news, Tesla confirmed that the development of its lithium refinery in Corpus Christi, Texas was underway and simultaneously announced that Tesla’s next vehicle assembly plant will be in Mexico near Monterrey.
“We’re super excited about it,” Musk said during the Investor Day event. “We’ll continue to expand production at all of our existing factories. So this is not moving output to anywhere, from anywhere. This is supplemental production.”
Tesla technical analysis
Following its earnings report on January 25, Tesla's share price surged over 50%, from $144 to a high of $217.65. Since then, its share price has been in a holding pattern, consolidating recent gains below the resistance from the 200-day moving average at $221.20 and above support near $190.
If the Tesla share price were to see a sustained break above $221, it would indicate that the rally from the January $101.83 low has started its next leg higher towards the $314 double high from August/September 2022.
Until then, we look for more sideways to corrective price action with scope back towards support at $175.00.
Tesla daily chart
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. 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. See full non-independent research disclaimer and quarterly summary.
Explore the markets with our free course
Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 16,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
