Tesla Inc TSLA shares are trading near session lows, down by 1.1% to $263.70, going into Wednesday's close. The stock is trading lower in sympathy with the broader market following Wednesday's Federal Reserve decision.
Like many other companies in the broader tech sector, Tesla relies on borrowing for various purposes, including financing its operations and investments.
When the Federal Reserve maintains or hints at future rate hikes, it can lead to higher borrowing costs for companies.
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Tesla, in particular, has historically burned through significant amounts of cash and carries substantial debt. Higher interest rates can increase its interest expenses, potentially impacting profitability and cash flow, which investors closely monitor.
What Happened?
The Federal Reserve maintained the federal funds rate at its existing range of 5.25% to 5.5% during its September meeting, as largely predicted by the market.
The Fed statement reiterated that additional policy firming to bring inflation to the 2% target may be appropriate depending on the upcoming economic data, effectively keeping the possibility of a future rate hike on the table...Read More
According to data from Benzinga Pro, TSLA has a 52-week high of $313.80 and a 52-week low of $101.81.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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