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Tesla Stock Clinched a 7-Day Winning Streak. Heres How. Tesla stock was, surprisingly, lower to start Wednesday trading as investors attention turned to the Federal Reserve. It rallied late in the day, however, after the central bank announced a 0.25 percentage point interest rate cut.
Shares of the electric vehicle maker traded as low as $409.67 before finishing just below $426, up 1%. The SP 500 ended 0.1% lower and the Dow Jones Industrial Average rose 0.6%.Seeing red on the screen is unusual for Tesla investors these days. On Wednesday, shares were coming off a six-day winning streak that added about $75, or 22%, to the stock price. A few things helped with gains, including CEO Elon Musks $1 billion stock purchase, which was disclosed on Monday. Tesla also appears to be on the cusp of expanding its self-driving taxi service to Las Vegas. Tesla launched its long-awaited robo-taxi service in Austin, Texas, in June.
Wednesdays rally was helped by something that isnt directly related to the EV maker: Interest rates. The Federal Reserve cut short-term rates by 0.25 percentage points, as expected. The target fed-funds rate is now 4% to 4.25%. The fed-funds rate started 2025 at a target range of 4.5% to 4.75%.
Car companies, including Tesla, like lower interest rates. Many cars are financed, and lower rates equal lower monthly payments. A cut didnt lead to a big stock bump, however, since the Feds move was widely expectedand because Tesla stock has run up more than 20% over a few days.
The Fed decision moved a lot of stocks up and down. Shares of Ford Motor traded as high as $11.88, before closing at $11.66, up a nickel on the day. Predicting reactions is never easy. Thats doubly true for a stock as volatile as Tesla. Shares have ranged from about $212 to $488 over the past 12 months. The $276 range is about 65% of the current price. That math for Apple shares yields less than 40%.
Coming into Wednesday trading, Tesla shares were up about 4% so far this year and up about 85% over the past 12 months.
