What's Going On With Tesla Stock Today

BY Benzinga | ECONOMIC | 11/16/23 01:38 PM EST

Tesla Inc (TSLA) shares are trading lower by 3.2% to $235.06 Thursday afternoon, pulling back following recent strength. The stock gained earlier this week following softer-than-expected October CPI data. Shares also gained earlier this week following reports India is mulling tax cuts for EV imports.

What Happened With CPI Data?

The October CPI report signaled positive strides in combating inflation in the US economy. It showed a decrease in the annual inflation rate from 3.7% to 3.2%, falling below economists' expected 3.3% projection.

Additionally, the core inflation measure, excluding energy and food prices, dropped more than anticipated to 4%, marking its lowest level in over two years. These declines suggest a positive trend in controlling underlying price pressures...

See Also: What's Going On With JD.Com Stock?

Why CPI Data Matters 

Lower inflation rates could positively affect consumer confidence and spending power. In turn, this might encourage more consumers to consider purchasing electric vehicles, including those offered by Tesla.

If people feel more secure about their finances due to lower inflation, they might be more inclined to make high-ticket purchases like cars, benefiting Tesla's sales.

Additionally, if inflation remains subdued, it might keep a lid on the cost of materials and components required for manufacturing Tesla vehicles.

Stable or lower input costs could help Tesla maintain or improve its profit margins, boosting its overall financial health.

See Also: Bearish Analyst Takes A Swipe At Tesla As EV Maker Offers Discounts On Inventory

According to data from Benzinga Pro, TSLA has a 52-week high of $299.29 and a 52-week low of $101.81.

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