Tesla Investor Day and 10-Year Treasury Yield: What to Expect
By All eyes will be on Tesla's Investor Day on Wednesday, March 1, as rumors swirl around what Elon Musk will unveil. Many expect the company to announce its “generation 3” platform, which is supposed to greatly reduce the cost of manufacturing and allow for a much cheaper mass-market Tesla.[0] Musk has also teased his “Master Plan 3” which is expected to revolve around a “path to a fully sustainable energy future for Earth.”[1]
In addition to the Tesla news, the 10-year Treasury yield has been on a rollercoaster ride lately, hitting 3.983% yesterday, its highest level in three months.[2] That is dangerously close to 4%, which analysts say is a key psychological level for investors.[2] This, combined with a decrease in consumer confidence, has caused stocks to dip and bond prices to fall.[2] Goldman Sachs and Chevron will also hold their own investor day events on Tuesday.[0]
Traders are betting that faster readings could trigger an outsized hike in March, with the CME Group's FedWatch indicating a 27% chance of a 50 basis point increase. Analysts predict that the Federal Reserve will raise rates by 25 basis points in May, and the likelihood of another hike of the same magnitude in June is currently estimated at 72%. With all this news swirling around, investors are keeping a close eye on Wednesday's Tesla investor day event, waiting to see how it will affect the markets.
0. “S&P 500 Forecast: Trying to bounce off support ahead of Tesla day” FXStreet, 28 Feb. 2023, https://www.fxstreet.com/news/sp-500-forecast-spx-clings-to-bottom-trendline-support-202302281435
1. “Dow Jones Futures: Warren Buffett Stock Falls On Earnings Miss; Tesla Investor Day On Deck” Investor's Business Daily, 28 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-warren-buffett-stock-occidental-falls-on-earnings-tesla-investor-day-on-deck
2. “CNBC Daily Open: Most Major Assets Fell in February, Giving Investors No Safe Haven” NBC Connecticut, 1 Mar. 2023, https://www.nbcconnecticut.com/news/business/money-report/cnbc-daily-open-most-major-assets-fell-in-february-giving-investors-no-safe-haven/2985300/
