Tesla’s shares surged 8% in Wednesday’s trading as the electric vehicle company benefited from better-than-expected inflation data. The stock’s gains followed a tumultuous start to the week due to recession fears, but improved inflation numbers provided a much-needed boost.
According to the Bureau of Labor Statistics, February inflation came in at 2.8%, lower than anticipated and beating economists’ expectations of 2.9%. Core CPI, which excludes food and energy categories, increased at a 3.1% annual rate, below estimates of 3.2%.
The improved inflation report raised hopes that the Federal Reserve will cut interest rates, which would be positive news for Tesla and other growth stocks. The company’s share price has been boosted by a recent show of support from President Trump, who publicly endorsed the company and purchased a Model S car.
Trump’s endorsement has had a significant impact on Tesla’s shares in recent days, with investors seemingly taking a more bullish view. The relationship between Trump and Musk has been a key driver of Tesla’s stock price movement, with the impact sometimes alternating between positive and negative.
Source: https://www.nasdaq.com/articles/why-tesla-stock-surging-today-1