Higher interest rates have been proved to be a headwind for the auto industry at large, and Tesla is no exception.

A rate cut makes borrowing cheaper, which can boost company profits and consumer spending, leading to higher stock prices. But Giuseppe Sette, co-founder and president of Toggle A

Shares of auto leaders Tesla (NASDAQ: TSLA) and Toyota Motor (NYSE: TM), as well as auto-centered semiconductor stock Indie Semiconductor (NASDAQ: INDI) were rallying on Thursday, up 7.3%, 4.3%, and 3.5%, respectively, as of 2:14 p.m. ET.

Shares of Tesla Inc. TSLA shed 0.29% to $227.20 Wednesday, on what proved to be an all-around poor trading session for the stock market, with the NASDAQ Composite Index COMP falling 0.31% to 17,573.30 and Dow Jones Industrial Average DJIA falling 0.

Shares of electric-vehicle maker Tesla tend to be more volatile the day after a Federal Reserve interest-rate decision than on the day itself.

A jumbo rate cut fed hopes for the auto industry. The post Why the Tesla share price just rallied appeared first on The Motley Fool Australia.

Electric vehicle maker Tesla’s ($TSLA) stock is stuck in neutral, down 7% on the year and trading sideways since July. Retail investors continue