- Tesla stock lost 6.3% on Monday after a YouGov poll was released.
- CEO Elon Musk has been raising eyebrows with a series of mean-spirited tweets.
- TSLA shares have regained 1.7% in Tuesday's premarket, as NASDAQ trades in the green.
- All eyes are focused on United States Consumer Price Index data release on Tuesday.
Tesla (TSLA) stock is trying to make up for some of Monday's major losses in Tuesday's premarket. TSLA stock sank 6.3% in Monday's session even as the NASDAQ advanced a healthy 1.3%. Typically, the electric-vehicle leader moves in the same direction as its exchange, but Monday saw two polls heavily affect sentiment in Tesla's share price.
Tesla stock news: Polls, US CPI, Elon Musk
The YouGov poll found that just 49% of those Americans surveyed had a favorable view of the Tesla brand. Critics harped on the fact that this was below 50%, although not too long ago this figure was actually 45%. Overall negativity toward Tesla was 20%, while those without strong preferences hit 28%. YouGov also found that 44% of Baby Boomers had favorable views of Tesla, while 53% of Millennials had favorable views.
Another survey from Morning Consult had the market even more worried because it said that Tesla was becoming a partisan brand. In a survey, Morning Consult found that self-described Democrats' net favorability for the Tesla brand had dropped from 25% to 10% in just one month. On the other hand, Republican net favorability regarding Tesla had jumped from 20% to 26.5% in the same period. This is somewhat unsurprising as CEO Elon Musk tweeted to his legion of Twitter followers before the midterm elections in early November to vote Republican. Since then Musk has engaged in a series of right-wing tweetstorms regarding conspiracy theories about Covid-19 and woke culture. Both of these positions set him up firmly in the center of right-wing internet culture that largely supports the Republican Party.
The reason the market does not like these polls – the Morning Consult one in particular – is that most major brands do not engage in overt politics for this reason. With Democratic voters thought to be the majority of Tesla's customers in the United States, being that they are more likely to take climate change seriously, turning off a large section of your customer base seems like a poor strategy for meeting sales targets.
Of course, TSLA stock is now rebounding as the Consumer Price Index (CPI) comes into view early Tuesday. Wall Street has placed consensus at 7.3% for the November YoY figure. If inflation comes in hotter, expect TSLA stock to sell off quickly. A lower reading would of course have the opposite effect, with Morgan Stanley saying Monday that a much lower reading below 7% would likely send markets soaring.
Tesla stock forecast
Monday's sell-off dropped Tesla stock right near the same support level we have been touting for months at $167.50. Since TSLA already created a near double top just under $200 on December 1, it seems more likely that this support level will break soon enough and sends shares down to $154. A major CPI beat could also send Tesla stock back up to $200. Any close above $200 brings the late October, early November $234 resistance price level into the discussion.
TSLA 1-day stock chart