Tesla stock is underperforming the Nasdaq to start the week. While the growth-focused index is down 0.23% one hour into Monday’s session, Tesla shares are off 0.8% at $285.79. Tesla’s 3-for-1 stock split does not seem to be working.
The EV stock outperformed the Nasdaq on Friday, but that same verve does not appear to be making an appearance on Monday morning. Shares have traded as low as $281.70 and as high as $287.74 in the session. The volume appears slightly above average so far.
Tesla’s (TSLA) stock fell on Friday in line with the broad equity market sell-off. Jay Powell turned extra hawkish on equities and did the job of taking out any remaining bulls. Tesla with its larger retail following was always likely to be a holdout, so it proved on Friday by it outperforming a stumbling Nasdaq.
The index lost 4%, while Tesla only sold off less than 3%. This may have had something to do wit the 3:1 stock split, which always appeals to human emotions.
The more negative read-through is the continued slide into the close for all equities and Tesla. The stock opened at $297.40 and even staged a brief rally but was quickly rejected. From there it was one-way traffic to the sell side with Tesla closing at more or less the low of the day. This usually leads to follow on selling in the next session.
Tesla is down over 2% in Monday’s premarket, so it looks like this particular trend is holding for now. The inflation reduction act may have given a kicker to green energy and EV stocks, but despite this we see too many headwinds in the form of a general market sell-off.
