Why Tesla Shares Dropped Today
Tesla (NASDAQ: TSLA) shares have dropped more than 10% over the last two weeks, despite potential tailwinds from the Inflation Reduction Act (IRA) being signed into law. That is partially due to how the competition will also benefit from incentives included in that legislation. This morning, Tesla shares fell as much as 2.1%, and remained down 0.3% as of 2:10 p.m. ET.
The downtrend has coincided with announcements from several traditional automakers that are taking advantage of what the IRA offers for electric vehicle (EV) manufacturing in the United States. Earlier this week, Honda announced plans to build a new $4.4 billion EV battery factory in the U.S. Today, Toyota said it would also be investing about $5.3 billion to add battery production capacity in the U.S. and Japan.
Source Fool.com
