Tesla Inc TSLA shares are volatile Wednesday after surging 7.7% on Tuesday. Here’s a look at what appears to be driving the action.
What To Know: Tesla shares traded higher Tuesday following a drop in Treasury yields, prompted by the release of new U.S. economic data. Tuesday’s JOLTs report showed a decline in job openings. The number came in well below analyst estimates, which lowered expectations for another rate increase from the Federal Reserve next month.
Future Fund’s Gary Black noted that the economic data was partially responsible for the significant move in Tesla shares. He also highlighted an increase in registrations for Tesla vehicles in China.
Another driving force behind the move in Tesla shares on Tuesday were reports suggesting the EV maker is launching a $300 million AI computing cluster powered by Nvidia chips.
Several reports indicated that the H100-based supercomputer will focus on multiple AI applications. One report even suggested that it could be one of the most powerful machines in the world.
On Wednesday, Guggenheim analyst Ronald Jewsikow reiterated Tesla with a Sell rating and maintained a $125 price target. The bearish analyst update appears to be responsible for some of the selling pressure in early trading Wednesday.
TSLA Price Action: Tesla shares are up more than 107% since the start of the year. After rallying on Tuesday, the stock was down 1.76% at $252.66 at last check Wednesday, per Benzinga Pro.
Photo: courtesy of Tesla.