Tesla Stock Plunges Amidst Risk-Off Moves

USD Strength Weighs on TeslaShares in Tesla are trading lower ahead of the open today with the stock now down more than 13% from September highs. Sentiment has weakened recently in line with the broad risk off moves we’ve seen across US stock markets. An uptick in Fed tightening expectations has weighed heavily on tech stocks. On the back of a fresh rise in inflation last month, market pricing for a further hike this year has jumped. At the FOMC this month, the Fed held rates unchanged as expected while signalling that one further hike this year was likely, confirming the prevailing market view. With USD trading higher on the back of the meeting, high yielding stocks look likely to remain pressured for now.Delivery Times RisingIn terms of company news, Tesla announced that the delivery times for its Model S and Model X vehicles has now risen to around a few months. This comes on the back of Tesla recently cutting the sales price of both those models. Fears over the health of the Chinese economy are also weighing on the outlook for Tesla here. Given that last year the Chinese market accounted for a third of all Tesla sales volumes, the downturn in economic strength dilutes the demand outlook over the coming months.Technical ViewsTeslaThe correction from the 276.74 level has seen the market falling back below the 255.61 level last. Focus is now on a test of the bull channel lows, as the next support, ahead of deeper support at the 207.71 level, in line with bearish momentum studies readings.