Shares of Tesla (TSLA -1.58%) fell on Wednesday, dipping as much as 4.5% before recovering and finishing the day down 1.6%. The drop came as the S&P 500 lost 0.2% and the Nasdaq Composite lost 0.7%.
Tesla stock is sliding as part of a larger sell-off in tech driven by macroeconomic concerns. It's also being reported that Tesla's Cybertruck has sold just 52,000 units in the two years it's been on the market, despite having 1 million reservations before it was released.
Economic data is making investors uneasy
The latest jobs data was doing little to reassure investors, and now, in a week full of consumer-facing company earnings, the results show weakness in the broader economy. At the same time, investors are awaiting news of the Federal Reserve's strategy moving forward. Given the poor economic indicators, many are anticipating a rate cut; however, the Fed is also battling sticky inflation that could get worse as the effects of tariffs are felt.
While a rate cut is usually good for riskier stocks like Tesla, given the mixed data and uneasiness in the market, the stock is taking a hit.
Image source: Getty Images.
Cybertruck sales have not materialized
Adding to that, another report is showing just how poor Tesla's electric vehicle (EV) sales have been. Much ink has been spilled about plummeting numbers in markets across the globe, but now the latest figures on the company's Cybertrucks are particularly stark. When the company began rolling out the futuristic trucks in November 2023, it had 1 million reservations. Since that time, only 52,000 have been sold.
Despite the company's substantial troubles with its core business, Tesla stock continues to trade at incredible multiples based on the possibility of some of its future technology taking off. I have my doubts. The company has a history of overpromising and underdelivering, and I would avoid Tesla stock.
