Why Tesla Stock Is Skidding Premarket Today

Tesla, Inc. TSLA stock continues its volatile ride, facing headwinds in premarket trading on Monday.

Amid Israel’s declaration of war on Hamas militants following weekend rocket attacks, market sentiment has taken a hit due to rising risk aversion. Concerns are growing that the conflict could escalate into a regional war, potentially disrupting oil supplies from the Middle East. 

This geopolitical tension has caused U.S. index futures to slide, with the Nasdaq 100, S&P 500, and Dow futures down by 0.60%, 0.49%, and 0.37%, respectively.

The initial impact of reduced risk appetite is often reflected in the weakness of overvalued growth stocks, including Tesla.

Additionally, Tesla’s sentiment may suffer from the monthly China sales report published by the China Passenger Car Association. In September, Tesla delivered 74,073 Made-in-China cars, marking a 10.9% year-over-year decrease and a 12% sequential drop, as reported by Reuters. Meanwhile, BYD, backed by Warren Buffett, reported a remarkable year-over-year increase of over 59% in battery EV sales for the same month.

Investors are also concerned about Tesla’s price cuts, which have not led to a corresponding increase in sales volume. Furthermore, the delay in the launch of the highly anticipated Cybertruck could be weighing on investors’ minds, as many see it as a potential catalyst for Tesla’s stock.

In premarket trading, Tesla declined by 1.65%, trading at $256.22, according to data from Benzinga Pro.

See Also: Everything You Need To Know About Tesla Stock