Tesla Stock Daily Drive

Welcome to Tesla Stock Daily Drive, where we dive into the day's market movements and uncover what truly matters. I'm your host, Dusty. Get comfortable as we take a leisurely cruise through Tesla's stock performance for May 29, 2025, and explore the broader economic landscape that shapes these numbers.

Let’s begin with Tesla. On this Thursday, Tesla’s shares slipped a bit, closing around $358.30 to $358.43. They started the day stronger, opening at $365.29, and even reached a high of $367.71. But by the end of the trading session, we saw a 1.96% dip from the opening. The volume was robust, with more than 88 million shares changing hands. Interestingly, after-hours trading brought a tiny bump, up by just $0.02, revealing an intriguing pause in the downward trend.

Several factors affected Tesla's performance. The buzz was partly due to Tesla beginning driverless Model Y tests in Austin, Texas, as they prepare for a future robotaxi launch. This exciting progress hints at a fundamental shift in urban transportation and a possible revenue surge for Tesla.

News of Elon Musk stepping away from a role within the Trump administration seemed to positively impact the stock, while a downgrade from an SA analyst exerted some negative pressure. Meanwhile, Uber's share status as "oversold" triggered market chatter, following Tesla's robotaxi news. It’s a real mixed bag that leaves investors with more than a few items to consider.

Zooming out to the broader market, we did see an overall upward trend with the S&P 500 and Nasdaq adding 0.4%, and the Dow ticking up by 0.3%. This positive movement was driven by a favorable court ruling on presidential tariffs and stellar earnings from Big Tech, notably Nvidia.

Investor sentiment was cautiously optimistic, influenced by recent revelations from the Fed's May meeting minutes. Concerns around persistent inflation and looming stagflation are notable, but the Fed's firm grip on interest rates between 4.25% and 4.5% offers some stability. These discussions underscore the critical balance between fostering growth and managing inflation.

Economic data released around the same time gave us some food for thought. The U.S. Census Bureau’s Index of Economic Activity held steady, and we awaited quarterly GDP revelations. The prior GDP estimate hinted at a slight contraction of 0.3%, a warning signal for economic watchers.

Shifting gears slightly, U.S. tariffs in 2025 seem poised to chip away 0.2 percentage points from GDP growth this year, while nudging unemployment upward. It's a challenging scenario as consumers face a hefty average tariff rate, the highest since 1969.

In other corporate news, Abercrombie & Fitch gleamed with a 14.7% surge, thanks to strong revenues, while the National Bank of Canada rose by 3.7% after beating earnings expectations. On the downswing, Sociedad Química y Minera dropped 4.2% following disappointing earnings, a reminder that expectations can shape market realities.

Before we wrap up, let’s consider a few investment tips. Today’s market is a brew of technological innovation and shifting geopolitical landscapes. Keep an eye on how companies like Tesla navigate technological advancements—they often set the pace for future industry shifts. Observe market feedback loops—news does influence performance, but the long-term viability of innovations like driverless tech could offer lasting value. Stay informed and patient, and remember the broader context when making your investment decisions.

And that's a wrap for today’s drive. Thank you for joining me, Dusty, on Tesla Stock Daily Drive. Remember, when the dust settles, only the truth remains. Be well, and until next time, keep your eyes on the road ahead.