Tesla's Tough Stretch: Why Stock Is Set To Open Lower Today

Tesla, Inc. TSLA faces more turbulence as shares are set to open much lower on Thursday.

In premarket trading on Thursday, the stock dropped 2.65% to $206.80, according to Benzinga Pro data. 

Since Oct. 18, following Tesla’s third-quarter report, the stock has slumped 16.5% from $254.85 to $212.42.

This downturn is a result of Tesla falling short of expectations across key areas, including revenue, earnings per share, and core auto margins. Elon Musk’s remarks on economic effects and challenges in ramping up Cybertruck production have also contributed to the negative sentiment. Investors are concerned about the lack of clarity regarding future margins.

Thursday’s decline could be influenced by comments from Meta Platforms management regarding geopolitics and economic factors affecting their fourth-quarter performance.

Rising bond yields and expected rate hikes are additional challenges for high P/E ratio growth stocks like Tesla.

See Also: Everything You Need To Know About Tesla Stock