$Tesla(TSLA.US) -6.6% today (NDX -4.3%) and -6.0% this week (NDX -4.5%) should not be a surprise to anyone paying attention to the two variables that matter:
1/ $SpaceX(SPCX.US) $75B IPO coming next week and is already oversubscribed. The IPO has to be paid for with funds from somewhere and taking it from $Tesla(TSLA.US) the most like-kind security to $SpaceX(SPCX.US) makes the most sense. 2/ Macro - Strong JOLTS (+7.6M vs +6.8M est), ADP (+122K vs +120K est), and today’s May non-farm payrolls (+120K vs +89K est) suggest the next Fed move is more likely a tightening than a cut, which hurts long duration equities like $Tesla(TSLA.US) most. The U.S.- Iran war is still ongoing, which does not relieve pressure on Brent crude - still up +33% since end of February, which prevents the Warsh-led Fed from even thinking about cutting short-term rates.
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