Actions of Tesla (Nasdaq: tsla) exchanged 4% less than 1:56 pm, with the wider market and like the electric vehicle The manufacturer had to recall hundreds of thousands of vehicles. THE Industrial average Dow Jones had sang nearly 700 points, while the Nasdaq Composite had dropped more than 1.6%.
The markets have sold intensely again today due to concerns about the consumer. Earlier this week, WalmartA proxy for the consumer, issued lower than expected directives.
The release of the feelings of consumers of the University of Michigan this morning only exacerbated these concerns. In January, the index dropped by 10% to 64.7, a larger drop than expected. The expectations of five -year inflation of consumers have reached 3.5%, the highest level seen since 1995. The market has recently exceeded a higher rate environment, pulled by sticky inflation, but the weakness of the ‘Economy turned out to be a delicate subject. After all, consumption expenditure represents more than two -thirds of the gross domestic product.
In company -specific news, Tesla recalled more than 375,000 of its vehicles. The National Highway Traffic Safety Administration awarded the recall to management problems in certain vehicles of model 3 and the model there from 2023 according to an old software version. Tesla knows no accidents associated with the problem and has deployed an update of free software to correct the problem.
Tesla was struggling in 2025, but has surpassed the whole since President Donald Trump won the elections. Analysts are always divided on the stock. Bull and Wedbush longtime analyst Dan Ives recently reiterated his outperformance note, citing key catalysts such as news launches on the horizon. Meanwhile, the longtime bear Gordon Johnson by Glh Research has seen a potentially disastrous quarter to come, with sales in the first quarter of 2025 significantly in China and several European countries.
I generally try to avoid actions with expensive assessments, especially with the upcoming uncertainty. With Tesla trading at 120 times the profits, I am stay away for the moment.
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