Shares in electric vehicle (EV) pioneer Tesla (NASDAQ: TSLA) were down by 4.8% as of 11:59 a.m. ET Monday as the market digested a few pieces of bad news for the company.
First, Friday's Consumer Price Index (CPI) report showed the U.S. inflation rate was a whopping 8.6% year over year in May. That's bad news because high inflation usually leads to higher interest rates, and higher interest rates make car loans more expensive. Indeed, the benchmark 10-year U.S. Treasury yield rose again to 3.3%; it was just 1.7% at the start of March.
Second, niche news website Electrek obtained a leaked email that Tesla CEO Elon Musk sent to company employees in which he said that Tesla had had a "very tough quarter" due to supply chain challenges in China, and called for employees to "rally hard to recover." This could be a sign that the EV maker is behind on its production targets and is pushing hard to catch up at the end of the quarter.
Source Fool.com