Why Tesla and Fed Officials Will Drag Down Market Tonight?

Tiger_comments
2023-03-02

In the much-awaited investor day, Musk was half an hour late, and the stock price dropped 1.43% right after the opening, and the market value directly evaporated about $30 billion. 

By the close of trading on March 1, $Tesla Motors(TSLA)$ shares were trading at $202.77, down 1.43% for the day. The stock price plunged 6% after the bell due to the lack of introduction to long-waited Model 2 or HW 4.0.

What else on Investor Day?

1) Optimus

Although Musk also revealed that the Optimus shown in the previous AI Day, in fact, did not work at all, now its situation is improving.

Optimus' ability to walk and work has been refined compared to last AI Day.

2) Cybertruck mentioned in Master Plan, Part Deux

Tsla's Cybertruck truck will come out this year, said Franz von Holzhausen, Tesla's chief designer. Tesla shares turned up after hours, after falling more than 3.6 percent at one point.

3) Sustainable energy- the core of Master Plan 3

Senior Vice President of Powertrain and Energy Engineering at Tesla, Drew Baglino,discussed a future in which the company would play a role in“re-powering the grid with renewable fuels”as they ramp up battery production, both for Tesla’s electric vehicles and for the company’s utility-scale energy storage systems.

4) New plants

Fed officials's support for 50 bps may accelarate pullbacks

Minutes from the Jan. 31-Feb. 1 FOMC meeting showed that“a few”participants favored or could have supported a 50 basis-point increase.

Kashkari reiterated that in December he saw the fed funds rate rising to as high as 5.4% in this tightening cycle. Financial-market bets for the peak rate reached 5.5% Wednesday.

“History teaches that if we ease up on inflation before it is thoroughly subdued, it can flare anew,”Bostic said in an essay on the Atlanta Fed’s website.“That happened with disastrous results in the 1970s.”

Will Tesla drag down the broader market tonight?

Do you think 50bps rate hike is possible in March?

Leave your comments to win tiger coins~

# Will Tesla drag down the broader market?

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Comment（130）

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  • Shop
    ·2023-03-02
    TOP
    The market's shifting view on a 50 basis point hike in March may continue to move around, but being too bearish in the short-term doesn't mean the market is not underestimating the degree of monetary restraint that will eventually be needed to rein in inflation. Even if the Fed is of the mind to stick with a 25-basis point hike in March, it will come back in May with a much better idea of where the economy is and have the option to pursue a 50-basis point hike at that point if warranted. Based on everything we have seen and heard from the Fed to date, it is much more likely that if they are inclined to go above 25 basis points at any point, it isn't before May.
    Last but not least, $Tesla Motors(TSLA)$ is likely to drag the broader market tonight. @Tiger_chat
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  • neo26000
    ·2023-03-02
    Did Tesla drag down the broader market last year? No.
    Did the broader market move in tandem with Tesla rise in Jan-Feb? No.
    So my take is Tesla will do its own thing and broader market  has a mind of its own.
    Whether it is 25bps or 50bps, it does not matter any more. What matters is not how the market will react but rather how the market "wants" to reach for each scenario. Analysts have prepared two opposing scripts to try to"justify" the resulting effect.
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  • LMSunshine
    ·2023-03-02
    As Musk didn’t present what the investors had wanted nor anything else exciting,investors will likely profit-take as TSLA is in overbought territory.Bears will take this opportunity to short and TSLA will likely drag the broader market down tonight.I think it’s possible for Feds to raise by 50bps as reducing the hikes to 25bps has seen an increase in inflation and the last thing the Feds want is for inflation to get out of control. Thanks loads @Tiger_chat for this important discussion❣️
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    • JohnnyYoung: 
      Musk muddying the water everyday which is super annoying.
      2023-03-02
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  • LMSunshine
    ·2023-03-02
    Friends comment for coins🥳@SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @MHh @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @Joker_Smile @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @Ericdao @StickyRice @StarLuck @Shyon @Success88 @kungpao @CL Wong @Derrick 1234 @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Tigress02 @Viv22 @aunteenat @airui @0QH @Cris0 @Brocco @AhGong @Ccl2 @Lcc73 @HLPA @WanEH @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Cory2 @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS @HSTew @Kerrisdale @PhilipChow @alylady @moliya @maricel @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose @DMTrader @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @fxaw @Kok
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    • Universe宇宙: 
      [ShakeHands] [Like]
      2023-03-03
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    • Thonyaunn: 
      Thank you for tagging 4 of us 😍😍😍😍
      2023-03-03
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    • BenjiFuji: 
      Thanks [Grin]
      2023-03-02
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  • LMSunshine
    ·2023-03-02
    Friends comment for coins🥳 @Agxm @Dodonan @BubTigger @Niskil @OddEyeCircle @DoreamonGo @StarAce @zerolih @WuDi @Asphen @MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @Bons @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @Cyberguard @kaite @BlueDragon @Tonyoh @aiyoh79 @drandy @AlfonsoDex @nerdbull1669 @InvisibleTig @AlanTiger @kwk @InvisibleP @miaomiao007 @hengsley @JC888 @Aqa @TigerHulk @eeth
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  • koolgal
    ·2023-03-03

    🌟🌟🌟Elon Musk's Investor Day was a disappointment to investors as it lacked details in $Tesla Motors(TSLA)$ 

    Road map to achieve its long term objectives and did not provide a time line or price for its proposed less expensive model.

    Tesla's share price has dropped almost 6% today.  However Tesla's share price drop did not put a dampener on the US markets with gains across sectors offsetting declines in financial and consumer discretionary shares.  The S&P500 rose 0.8%, Nasdaq up 0.7% and Dow Jones up 1%.

    Investors cheered  after Atlanta Fed President Raphael Bostic said that he still firmly support raising interest rates in quarter point increments.   All eyes will be on the FOMC meeting in March 15-16 as to what is the new interest rates hike. 

    I believe that it would be 25bps but if it is 50 bps, the markets will be negatively impacted. However the Feds still have a monumental task to curb high inflation no matter what. 

    @Tiger_chat  

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  • Aqa
    ·2023-03-03
    💚💚💚💚Thanks for organizing this activity @Tiger_chat Thanks 🐯 friends for tag, comments + likes. Tesla’s market cap is not big enough to drag dowm the U.S. market. But the market can drag down the going-to-nowhere Tesla share price. Tesla share price had tried three times but failed to break above USD$217. The market’s disappointment with Tesla’s Investor Day is the last straw to pullback Tesla’s share price. Market pressure due to the Investors’ fear of 50bps rate hike in March should not be ignored. Special thanks @LMSunshine @rL @Shyon @Universe宇宙 @Success88 @GoodLife99 @Jadenkho @pekss @HelenJanet @koolgal @SR050321 @Fenger1188 @MHh @amroui @SirBahamut @BenjiFuji @b1uesky @StickyRice @StarLuck @evepek @Mrzorro @Pepermintpat
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    • HelenJanet: 
      Thanks for sharing 👍👍
      2023-03-03
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    • Aqa: 
      @Shyon Ghanks v much for tag😊🍀
      2023-03-03
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  • deal2deal
    ·2023-03-02
    TOP
    Recent Fed history does suggest that if the Fed moves by 50 basis points it is not likely to be its first move in a hiking cycle. A May 2000 increase of 50 basis points came after five bumps of 25 basis points from June 1999 to March 2000, and was the last rate increase of the cycle. The 50 and 75 basis point moves in 1994 – 1995 (May, August, November, February) came after three bumps of 25 basis points (February, March, and April 1994). As is in the 1999 – 2000 rate hike cycle, these larger moves marked the end of monetary policy tightening, according to a review of the moves by DataTrek Research. "History says the Fed leaves 50 basis point moves (or greater) for the middle to end of a tightening cycle. Hence, I do not think50bps hike is possible in Mar @Tiger_chat
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    • WinifredAnn: 
      history perhaps direct us to some near-right way, but it is volatile that makes such clear rules blurred
      2023-03-04
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    • ALLinOne: 
      Could be such indicators more suitable to current market? whether it or not, interest rate still important in resolve inflation as usual.
      2023-03-04
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  • Universe宇宙
    ·2023-03-03
    Inflation already go to the moon with some example like your food pricing going up at least double or even triple or more, and some central banks still far behind the interest rate curve, a 50 bps hike is not going to help everyone as it did not really address "transitory" inflation. They should have done a 175 bps hike in March 2023 meeting to push inflation down if they really care, or maybe they still think it is "transitory"? [Facepalm]

    @LMSunshine @Mrzorro @Aqa @Fenger1188 @GoodLife99 @rL @SirBahamut @HelenJanet @pekss @Korer @JC888 @melson

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  • nickname168
    ·2023-03-02
    Recent U.S. data, including an uptick in personal consumption expenditure - the Fed's preferred gauge of inflation, has prompted some major investment banks and brokerages to factor in the possibility of a 50-basis-point rate hike in March versus 25 bps expected earlier. Money market traders still see an 80% chance of the Fed delivering a smaller 25-basis-point rate hike in March. @deal2deal @AhGong @luv2trade
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  • Bons
    ·2023-03-02
    the late of 30 mins means that you're lacking something to present yourself or your ideas to the public. that could mean a lack of self confidence to your shareholders. I believe Tesla shares would be drag down tonight. and sadly it is possible for the FOMC to hike the rate up to 50 bps, since the data up to now support the overheating of the economy machines.
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  • airui
    ·2023-03-03
    Seems like the stock market rebound yesterday prematurely. we could be seeing more downside.

    And TSLA can help to lead the downhill charge as it is overbought for sure.

    I will be waiting to deploy my warchest to buy some real stocks  instead of trading options. That is provided the RSI dropped further.

    TGIF!

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  • WanEH
    ·2023-03-02
    I think Tesla sure will drag down the market. it's because there is no special news and innovative idea were presented to the investors. And more and more car maker is coming into the EV market to share the cakes.

    and due to inflation data is still high, I think the federal may considering 50bps if the next cpi data is unfavorable.

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  • Shyon
    ·2023-03-02
    Yes tsla will drag down the market tonight definitely. Regarding the rate hike, it is possible to have 50bps but I still guess the hike will be smaller like 25 bps but last for longer quarter.

    @Aqa @koolgal @LMSunshine @Universe宇宙 @rL

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  • GoodLife99
    ·2023-03-03
    have I misse this event?
    Tesla always the one leading the EV market, most of the time if it's up, other EV will follow the momentum too in the past.

    However it may not be the scenario now to drag down 'the broader market' but Fred's rate hike, especially for most of the Tech stocks.

    US inflation raised to 7.950bps rate % in Feb, hitting new 40-yr high, 50bps hike is possible in March. [Facepalm]

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  • highhand
    ·2023-03-02
    No. Tesla will drag down Tesla only. The rest of the world don't care about Tesla.

    And No. 50bp in Mar unlikely. The Fed will wait for a few more months CPI data first. It will still be 25bp.  There's time to be patient by the Fed.

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  • Tigress02
    ·2023-03-03
    Tesla alone will weigh down the market, but it’ll take collective efforts to Drag down the market. It has been speculated that the Fed will bring about another rate hike of 0.25 basis point on 22 March.
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  • Kk66
    ·2023-03-02
    Tesla will take down the Qs tonight; it was due for a pullback anyway. Markets haven’t been able to hold up despite dollar easing so it’s not all on Tesla. Job numbers report are delayed #suspicious the market could trade up tonight, let’s see. Will we be chasing waterfalls soon? Likely.
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  • MHh
    ·2023-03-02
    50bps rate hike seems increasingly possible as the inflation is too stubborn and economy looks resilient enough. High chance for tesla to drag down the market
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  • BenjiFuji
    ·2023-03-02
    Yes, Tesla will possibly weigh down the market. But i think the Fed will weigh it down even more. 50bps is definately a lot more possible. However i am celebrating as more undervalued stocks are coming [Sly]
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