Tesla Hits $500 Range Intraday Amid China Headwinds and Tech Stock Correction Impact

After Musk CEO's SNL Appearance, Negative News Spreads
Palantir Stock Surges... Bitcoin Payment Allowed

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Electric vehicle maker Tesla's stock started trading in the $500 range amid overlapping negative factors. It is the first time in about two months that Tesla's stock price has recorded the $500 range.

Despite nationwide attention sparked by CEO Elon Musk's appearance on the comedy show "Saturday Night Live" (SNL) over the weekend and the public unveiling of the Cybertruck in New York, negative factors continue to weigh down the stock price.

On the 11th (local time), Tesla's stock opened at $599.19 on the Nasdaq market. The lowest price was $595.

Before the market opened that day, Tesla's stock experienced a sharp 7% drop in pre-market trading. As of 10:20 a.m., the stock price was down 2.9% to $610.

The sharp decline in Tesla's stock price is partly related to inflation concerns causing technology stocks to undergo significant corrections for two consecutive days. The Nasdaq index fell 2.5% the previous day and was down 1.5% on this day. The Dow Jones and S&P 500 indices also showed a decline of 1.5%.

Sales of Chinese-made vehicles in April dropped 27% from the previous month to 25,845 units, which also appears to have dragged down Tesla's stock price.

On this day, a major foreign media outlet reported that Tesla had planned to develop a site near the Shanghai Gigafactory as an export base for the U.S. and Europe by purchasing additional land, but abandoned the plan due to tariffs imposed amid U.S.-China tensions. This is also said to have worsened Tesla investor sentiment.

New York citizens are lined up to see the Cybertruck displayed at the Tesla store in Manhattan.
[Image source=Reuters Yonhap News]

The ARK Innovation Exchange-Traded Fund (ETF), mainly holding Tesla, is also down about 1.5%.

Unlike Tesla's sluggish performance, Palantir, a major holding in the ARK ETF, is up 4%. Palantir announced on this day that it would start accepting Bitcoin payments, similar to Tesla. Palantir's co-founder is Peter Thiel, who founded PayPal together with Musk.