Tesla Stock Drops After Nvidia Disappointment, European EV Sales -- Barrons.com

By Al Root

Tesla stock was down early Thursday with stock futures hovering near break even after Nvidia earnings.

Shares of the electric vehicle maker were off 0.2% at $341.30 while S&P 500 futures were up 0.1% and Dow Jones Industrial Average futures were up 0.2%.

Nvidia shares were down 0.8% in premarket trading at $144.71 following its quarterly results reported Wednesday evening. Nvidia reported third-quarter sales of $35.1 billion. Wall Street was looking for $33.2 billion. For the coming quarter, Nvidia expects to generate sales of about $37.5 billion. Analysts were projecting $37.1 billion.

It's a solid quarter for Nvidia, but the stock has been exceptionally strong coming into the results. Through Wednesday trading, Nvidia shares were up 195% this year.

All the early Thursday moves look small given the potential impact of Nvidia results on the market. Through Wednesday trading, it was the most valuable stock in the world with a makret value of about $3.6 trillion, according to FactSet. Apple has a market value of about $3.5 trillion.

Options markets implied that Nvidia shares would move about 8%, up or down, following earnings. Shares moved an average of about 9% following the past four quarterly reports. They rose twice and fell twice over that span.

There was a little Tesla-specific news for investors to digest. European car buyers purchased 169,525 battery-electric cars in October up about 7% year over year. That's a relatively good result. Coming into October European battery-electric vehicle sales were down about 3% year over year. Overall European new car sales are up about 1% year to date through October.

Trading volatility could pick up later in the day, but it's relatively quiet for now.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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November 21, 2024 07:15 ET (12:15 GMT)

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