Tesla stock falls as global sell-off hits US markets

A widespread global market sell-off has sent US stock markets tumbling as investors struggle with growing recession concerns. Tesla (TSLA) shares have fallen more than 10% at the open amid this downturn.

Morning Brief co-hosts Seana Smith and Brad Smith explore additional factors that may be contributing to the electric vehicle maker's stock decline.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video transcript

Given the magnitude of the sell off.

Let's start with Tesla.

You've got shares sinking this morning.

You're looking at losses of just about 11%.

Some of that sparked by those economic concerns that we're seeing playing out, really hitting across the board, the NASDAQ also sinking significantly here at the open.

If you can pull that up, it's now off just about just over 6% here.

So, Brad, what?

We are seeing this rotation.

We had started to see that, uh, play out out of some of these larger cap tech names.

But when you look at today's action, they're selling across the board small caps, also not working in today's action, but with Tesla specifically, you're seeing this continuation of the trade that we have seen now for quite some weeks when we do see investors rotating out of some of the trades that had been working at least most recently, given Tesla's recent run up.

And now we are seeing dramatic moves to the downside here.

Tesla being one of the mag seven underperformers here today, Yeah, one of the things and and it's both on the buyer side for a lot of people who are looking at the EV space and trying to figure out whether or not they need to purchase right now, especially if we're staring down A as city was putting at their base case for a recession and then ultimately thinking about those large purchases and even financing large purchases.

And, of course, the network for the electric vehicles.

Right now, all all those things considered, I think Tesla and their own pricing war that it had initiated coming back to bite itself for some of the margins that investors would like to see on a go forward basis.

We're still waiting for this whole submit kind of taxi network to come about.

We're still waiting for some of the larger promises, especially in the unveiling of some of the new vehicles as well.

And so in this interim period, especially combined with the larger market sell off, Tesla is going to be one of the riskier assets.

Uh, especially if Elon Musk has to accept the fact or at least address as it seems like.

He's, uh, becoming more prone to do so that maybe the pricing war that it initiated is coming back to actually hit its company.

Unfortunately, in this near term period of time,