News

Tesla Stock Decline

James L. Flint

• March 01, 2024

Tesla Faces Headwinds in Early Trading

In the midst of pricing developments overnight both in China and the U.S., Tesla's stock appears to be on a downward trend as the market opens on Friday.

Pricing Developments in China and the U.S.

According to a Chinese language post on Tesla's Weibo social media account, the electric-vehicle maker is now offering an insurance subsidy. This subsidy translates to approximately $1,000 off purchases of Tesla's current inventory of Model 3 and Y rear-wheel vehicles in China, but only for purchases made before the end of March.

Market Competition

Tesla is met with tough competition in the Chinese market, particularly from rival BYD, whose stock saw a 0.5% increase early Friday. Meanwhile, in the U.S., Tesla has raised prices for some Model Y vehicles by $1,000, as reported by Reuters.

Market Outlook

Tesla's shares saw a 0.5% decrease in premarket trading, contrasting with a 0.1% gain in S&P 500 futures and a 0.3% increase in Nasdaq Composite futures. Stocks of Tesla's competitors also saw movements, with NIO shares up by approximately 1.2%, Lucid stock down by 0.3% in premarket, and Rivian shares also down by 0.4%. On the other hand, Ford Motor and General Motors stocks remained flat.

Looking Ahead

Despite the challenges and fluctuations, Tesla stock remains significantly below its 52-week high of $299.29 set last summer. With trading volume at 95.9 million at Thursday's close, marking a shortfall of 14.7 million compared to its 65-day average volume of 110.6 million.