EMBK - Tesla leads big down day for EV sector as recession reality sets it

Tesla (NASDAQ:TSLA) peeled off 9.66% late in Thursday afternoon trading and is now down close to 50% from the all-time high. The decline in TSLA coincides with selling across global markets, including a 4.28% drubbing for the Nasdaq 100. The fear of a U.S. recession amid rapidly rising interest rates is impacting sentiment. As expected, Tesla (TSLA) again boosted prices by roughly 5% across all its models in response to high costs to manufacture EVs. For now, the higher pricing is not expected to impact sales levels for Tesla (TSLA). "While some concerned price hikes will destroy demand, for now Tesla remains supply constrained," noted Credit Suisse. Analysts have also noted that the quick pace of interest rates hikes from the Federal Reserve resets the thinking on valuation and discounted cash flow multiples across the electric vehicle sector in general. Other EV decliners on Thursday included Helbiz (HLBZ) -14.34%, Embark Technologies (EMBK) -12.55%,

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Tesla leads big down day for EV sector as recession reality sets it