Tesla’s stock is poised to extend its decline as it closed last week in the red. After breaking a two-day winning streak on Friday and closing down by 0.3% at $199.95, the shares were 1.9% lower in premarket trading on Tuesday. This decrease follows a holiday on Monday due to Presidents Day, with the Nasdaq Composite and S&P 500 futures also down by 0.4% and 0.3%, respectively.
Impact of Xpeng Rivalry
Tesla’s stock movement comes amidst warnings from rival Xpeng regarding intense competition in the electric vehicle sector. Xpeng’s CEO, He Xiaopeng, mentioned a potential “bloodbath” resulting from the competitive landscape in China. The company aims to hire 4,000 staff and invest in research related to “intelligent driving” for its AI technology. Xpeng’s shares did not respond to inquiries for comments.
Market Trends
Shares of Tesla’s counterparts also experienced fluctuations on Tuesday. While Lucid Group saw an increase of 0.5%, NIO shares declined by 1.1%, and BYD stock fell by 2.3% in Hong Kong trading. General Motors stock also decreased by 0.3%.
Future Outlook
Tesla’s current stock value is notably lower than its 52-week high of $299.29, which was achieved last summer. Additionally, the trading volume of 111.35 million is slightly below the 65-day average volume of 113.91 million.
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