Tesla Car Maker Falls on Wall Street Recovering

Tesla Car Maker Falls on Wall Street Recovering

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Tesla lost value on Wall Street on Thursday after CEO Elon Musk said that the new factories in Germany and Texas are suffering billions in losses. The factories of the maker of electric cars suffer from high costs and, according to Musk, are “gigantic money-burning blast furnaces”.

 

Shares of Tesla fell more than 1 percent shortly after the opening bell in New York. According to Musk, the focus at the company is now on keeping the work going. The businessman also recently announced that he would be cutting jobs to cut costs.

The mood on Wall Street was also moderately positive after the recent heavy price losses. Investors are trying to shake off concerns about a possible recession. Federal Reserve Chairman Jerome Powell told Congress on Wednesday that rapid rate hikes could cause an economic contraction. On Thursday, Powell will appear before the House of Representatives, where he is expected to repeat that message.

The Dow-Jones index was 0.5 percent in the plus in early trading at 30,650 points. The broad S&P 500 climbed 0.4 percent to 3774 points and tech gauge Nasdaq rose 0.2 percent to 11,072 points.

Nike recorded a small 1 percent in the plus. The sportswear manufacturer is completely withdrawing from Russia, according to the Reuters news agency. Three months ago, the sports brand ceased all its activities in the country because of the Russian invasion of Ukraine.

Occidental Petroleum in turn won more than 3 percent. Berkshire Hathaway, the investment company of stock market legend Warren Buffett, has further expanded its stake in the oil producer to more than 16 percent.

IT consultant Accenture climbed nearly 3 percent thanks to better-than-expected revenue in the past quarter. The company also raised its revenue forecast for the full year. Home builder KB Home won more than 7 percent after well-received results. The company warned that higher interest rates and high house prices are beginning to put pressure on revenue growth.

Office lessor WeWork increased about 6 percent thanks to a buy recommendation from the Swiss bank Credit Suisse. Cloud company Snowflake rose 4 percent after an advice increase by the American bank JPMorgan.

Investors also received new data about the US labor market. The euro was also worth $1.0525, compared to $1.0592 a day earlier. The price for a barrel of American oil rose 0.4 percent to 106.60 dollars. Brent oil cost 0.5 percent more at $112.26 a barrel.

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