Tesla Shares Drop 2.4% as WTI Crude Tops $100
Tesla shares fell 2.4% in after-hours trading as WTI crude oil topped $100 per barrel and Nasdaq futures dropped 1.7%. The stock’s trailing P/E near 371x exposed it to risk-off selling despite potential EV demand benefits from higher fuel costs.
1. After-Hours Decline
Tesla shares plunged 2.4% in after-hours trading following WTI crude oil surging past $100 per barrel, contributing to a 1.7% drop in Nasdaq futures.
2. Valuation Pressure
With a trailing P/E near 371x, Tesla’s high valuation multiple makes the stock especially vulnerable to risk-off rotations prompted by rising energy costs.
3. EV Demand Dynamics
Although higher fuel prices typically enhance electric vehicle appeal, investors rotated away from high-multiple names regardless of sector fundamentals, weighing on Tesla.
4. Peer Comparison
Rivian and Lucid also declined roughly 2%, underscoring a broader selloff in high-valuation EV names despite rising gasoline costs.