Tesla Inc TSLA shares are trading higher Tuesday as the stock rebounds after falling sharply last Thursday with the overall markets in the wake of the Fed's rate hike announcement.
The Federal Reserve raised interest rates by three-quarters of a percentage point last week, representing the most aggressive rate hike since 1994. The rate hike pressured stocks across sectors and drove a selloff in tech-related names. Tesla's move lower was exacerbated after the EV company raised the prices of its vehicle models in the United States as raw material costs surge amid global supply-chain disruptions.
Tesla CEO Elon Musk has also said the company would cut its salaried workforce by 10% over the next three months. However, Musk reportedly walked back those comments in a recent speech during Bloomberg's Qatar Economic Forum.
According to an InsideEVs report, Musk said Tesla would reduce its headcount by closer to 3% to 3.5%, rather than the 10% reduction he initially said the company was aiming for. The Tesla CEO reportedly noted that Tesla's headcount will likely be higher a year from now than it is today.
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TSLA Price Action: Tesla has a 52-week high of $1,243.49 and a 52-week low of $601.34.
The stock was 10.72% at $719.96 at press time, according to data from Benzinga Pro.
Photo: courtesy of Tesla.
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