After snapping a four-session losing streak on Tuesday, Tesla, Inc. TSLA shares could resume their downtrend. In premarket trading on Wednesday, the stock fell 1.59% to $216.42, according to Benzinga Pro data.
The stock has been on a lean trot since mid-July when the company reported its third-quarter results. The weakness has extended into the new year.
A few factors that could be weighing down on the stock on Wednesday are:
- Weak cues from the futures market, which point to a lower opening as traders look ahead to a trio of Fed speeches scheduled for the day amid concerns that the central bank may not cut rates as swiftly as they would like it to.
- Tesla has lowered prices in Germany. The company has implemented price cuts across various Model Y configurations by up to 5,000 euros ($5,437).
- The company is scheduled to release its quarterly results on Wednesday, with investors worried about the margin trajectory and the 2024 guidance.
- Data released from China showed that the fourth-quarter GDP in one of Tesla’s biggest markets came in weaker than expected.
The stock, which is currently at a two-month low, could continue to remain rangebound until its earnings are reported.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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