Why Tesla Stock Tumbled After Surging Higher Earlier This Morning
Shares of Tesla (NASDAQ: TSLA) were trading up over 4% earlier this morning before giving back those gains by early afternoon. As of 12:14 p.m. ET, the stock was up 1.37%.
What probably got the market off on a positive note was a small pullback in interest rates at the start of trading on Tuesday. Long-term U.S. Treasury rates have more than doubled year to date, which has pressured the valuations of expensive growth stocks like Tesla.
However, later in the morning, Reuters reported that Tesla planned to hold production at its Shanghai plant below full capacity. The market is trying to figure out what this might mean for Tesla's business.
Source Fool.com
