TESLA SHARES SURGE AMID FED RATE CUT AND CYBERTRUCK DEVELOPMENTS

Tesla Inc. shares (NASDAQ:TSLA) are trading higher Wednesday likely due to the broader market reaction to the Federal Reserve’s recent policy decision to cut interest rates by 50 basis points, marking the first rate cut in over four years.

Federal Reserve Update

The cutting of the federal funds rate to a range of 4.75%–5% has resonated across multiple different markets. Specifically:

  • Dollar Weakening: The U.S. dollar fell, particularly against the Japanese yen.
  • Treasury Yields: Fell, causing bond prices to rise.
  • Gold Prices: Soared by 1%, reaching new all-time highs.
  • S&P 500: Achieved record highs, increasing by 0.4%.
  • Small Caps: Surged by 1.5%, as seen in the performance of the iShares Russell 2000 ETF.

The Fed’s statement provided a glimpse into their projections, indicating lowered estimates for economic growth and inflation while projecting higher unemployment rates for the coming years. The Dot Plot suggests further cuts in interest rates are likely, with anticipated reductions of another 100 basis points by the end of 2024.

Updates on Tesla's Cybertruck

Recent guidance and legal actions involving Tesla's Cybertruck have also been in the spotlight:

  • Engineer Wes Morrill's Advisory:
    • Warning Against Extension Cords: Morrill, Tesla’s Cybertruck lead engineer, advised users against the use of extension cables on superchargers, citing risks of cable overheating and shorting. This reinforces Tesla’s previous stance against practices that interfere with its supercharger system, such as the use of wet towels to accelerate charging.
  • Legal Action Against EVject:
    • Safety Concerns: Tesla has filed a lawsuit against EVject, claiming that their “breakaway” charging connectors are unsafe as they lack over-temperature protection, posing risks of burns and fires.
  • Celebrity Engagement:
    • Kim Kardashian's Custom Cybertruck: Kim Kardashian made headlines with her uniquely painted Cybertruck, diverging from its standard paintless stainless steel exterior. This move underscores the customization appeal among high-profile owners.
    • Other Celebrity Owners: Big names such as Jay-Z, Beyonce, Lady Gaga, and others, have also been spotted with the Cybertruck, adding to its cultural cachet.

    • TSLA Price Action: Tesla shares were up by 1.33% at $230.89 according to Benzinga Pro.

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    This article Tesla Shares Surge Amid Fed Rate Cut And Cybertruck Developments originally appeared on Benzinga.com.

    2024-09-18T20:39:52Z dg43tfdfdgfd