(NASDAQ: TSLA) shares are down more than 10% since it reported third-quarter earnings two weeks ago. But that negative return was worse before the start of today's trading. That said, today, Tesla shares jumped and were trading higher by 5.7% as of 12:20 p.m. ET.
The recent decline was spurred by underwhelming third-quarter profits and exacerbated by CEO Elon Musk's concerns regarding the macroeconomic picture for new vehicle buyers. In the conference call for investors, Musk noted: "If interest rates remain high or if they go even higher, it's that much harder for people to buy the car. They simply can't afford it."
Some of today's rally is surely due to yields on Treasury bonds dropping after the Federal Reserve kept interest rates steady yesterday. Economic data released today also showed signs of easing inflation and a slowing labor market -- more data points for investors to feel like the Fed could be finished with this rising rate cycle.
Source Fool.com