Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Tesla, Inc.    TSLA


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Tech Selloff Eases After Fed Signals Steady Course

02/23/2021 | 12:02pm EST

By Michael Wursthorn

Tech stocks bounced back from their worst open in months Tuesday, after prepared testimony from Federal Reserve Chairman Jerome Powell cooled the rate fears that have fueled a late February rout.

Many major stocks were down, but only modestly so. Tesla Inc. had fallen 5% after dropping as much as 12% in early trading, while the Nasdaq Composite Index was down 1.9% after an early decline of 4% put it on track for its worst day since September. The index is down about 6% from its peak Feb. 12, as rising U.S. interest rates prompt a broad re-evaluation of investor growth expectations, and on track for a sixth straight decline -- its longest pullback in a year.

Tesla, whose 743% surge last year highlighted the tech-led market rebound from the coronavirus selloff, is now down for 2021 and has lost a quarter of its value since the electric-car firm said Feb. 8 that it had spent $1.5 billion on bitcoin in a bid to boost returns on cash.

Other investor favorites were also recovering after being hit hard in early trading. Moderna Inc., the biotech maker of a major Covid vaccine, was down 8% after falling as much as 13%. Apple dropped 2.8% and Amazon.com Inc. fell 1.5%.

The tech firms have emerged as a favorite of the small investors who have piled into stock and options trading over the past year, with Nasdaq rising 44% in 2020. But the scale of the rally has prompted concerns that many of the stocks are overvalued, making them vulnerable to sudden slumps.

The rise in U.S. interest rates over the past week to a recent 1.37% on the 10-year Treasury note signifies expectations of faster economic growth, which investors said reduces the relative attractiveness of the tech firms compared with more economically sensitive and less highly valued investments such as banks and manufacturing firms.

"We're seeing a nasty, violent rotation," said Mike Bailey, director of research at FBB Capital Partners, an investment manager in Bethesda, Md. "A lot of the stratosphere stocks are getting dragged down."

The pullback comes on the heels of dozens of record closes for major indexes in recent months. The Dow hit a recent record on Feb. 17 and the S&P 500 on Feb. 12. Investors said the gains in stock indexes was driven in part by the notion that with U.S. interest rates near all-time lows, there was no alternative to investing in shares -- a concept that came to be known by the acronym TINA.

The modest rise in U.S. rates this year hasn't made borrowing substantially more costly or notably increased the appeal of bonds, but it has reminded investors of the risks of holding investments.

Stocks retraced some declines later Tuesday after Mr. Powell signaled in prepared testimony before Congress that despite signs of recovery since the Covid pandemic began, "the economy is a long way from our employment and inflation goals." The comment was taken by investors as a sign that any Fed interest-rate increases are "still several years away," said Paul Ashworth of Capital Economics.

Even so, many investors remain circumspect for the moment. Mr. Bailey of FBB Capital said his firm has been cautious on stocks, with major indexes near records and bond yields ticking up. FBB has been buying corporate bonds as one play on the changing environment, he said.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

02-23-21 1201ET

Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -2.45% 122.06 Delayed Quote.-8.01%
BITCOIN - EURO 1.00% 42546.25 Real-time Quote.69.66%
BITCOIN - UNITED STATES DOLLAR 1.36% 51365.55 Real-time Quote.67.44%
DJ INDUSTRIAL -0.39% 31270.09 Delayed Quote.2.56%
MODERNA, INC. -10.62% 131.22 Delayed Quote.40.53%
NASDAQ 100 -2.88% 12683.328283 Delayed Quote.3.06%
NASDAQ COMP. -2.70% 12997.751682 Delayed Quote.3.65%
S&P 500 -1.31% 3819.72 Delayed Quote.3.04%
TESLA, INC. -4.84% 653.2 Delayed Quote.-7.44%
All news about TESLA, INC.
05:21pTech Down As Treasury Yield Spike Spurs Rotation Out Of Sector - Tech Roundup
05:06pStar stockpicker Cathie Wood remains bullish on bitcoin, warns on banks
12:05pCalifornia startup touts battery-swapping to juice demand for electric vehicl..
12:02pVolkswagen CEO tweets, Musk-style, on market-cap milestone
11:58aSTREET COLOR : Tesla Shortens Delivery Time of Model 3 Ahead of Quarter-End: Tes..
11:55aSTELLANTIS N  : CEO "not so sure" global chip shortage will be resolved by H2
11:55aStellantis cfo says he expects similar amount of emissions credits from tesla..
08:46aTESLA  : UBS Lifts Tesla's PT to $730 From $325 on Expected Software Revenue, Ro..
06:30aSAMSUNG ELECTRONICS  : considers four sites in U.S. for $17 billion chip plant -..
05:54aTESLA  : Gets a Neutral rating from UBS
More news
Financials (USD)
Sales 2021 48 077 M - -
Net income 2021 3 232 M - -
Net cash 2021 10 145 M - -
P/E ratio 2021 214x
Yield 2021 -
Capitalization 627 B 627 B -
EV / Sales 2021 12,8x
EV / Sales 2022 9,84x
Nbr of Employees 70 757
Free-Float 80,3%
Duration : Period :
Tesla, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TESLA, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 39
Average target price 600,14 $
Last Close Price 653,20 $
Spread / Highest target 83,7%
Spread / Average Target -8,12%
Spread / Lowest Target -79,3%
EPS Revisions
Managers and Directors
Elon Reeve Musk Chief Executive Officer & Director
Zachary J. Kirkhorn Chief Financial Officer
Robyn M. Denholm Chairman
Ira M. Ehrenpreis Independent Director
Antonio J. Gracias Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
TESLA, INC.-7.44%658 882
NIO LIMITED-11.18%67 647
ARCIMOTO, INC.45.81%632