First American News LLC, Raleigh NC: Shares of electric-vehicle producers started out getting hammered Wednesday—that much was easy to see. Why the stocks dropped was harder to figure out. It seemed to be a combination of a few factors. But things turned around late in the day. Investors can thank one of the reasons stocks were down: The Fed.
Tesla stock (ticker: TSLA) closed up almost 2% at just under $976 a share. The Nasdaq Composite gained 2.2%.
Tesla, and the Nasdaq, looked like they would both close in the red for a third consecutive day. Tesla stock was down 2% in Wednesday afternoon trading, falling below $940 a share. Shares were on pace for its worst close since October.
Tesla and the tech-heavy Nasdaq dropped on inflation concerns and the potential for higher interest rates. Higher rates hurt highly valued stocks, including Tesla, more than others. What the Fed said Wednesday, however, seems to have slaked some of those concerns. Click here to continue reading at Barron’s News, and find out new developments on Tesla Stocks, NIO News, and EV Stocks.
