Tesla Falls After Morning Rise as U.S. Stocks Extend Tech Selloff

Tesla shares fell after an early Friday rise following its Roadster showcase, while a technology-led selloff pushed the S&P 500 down 1.1% and the Dow lower at the close.

The S&P 500 finished at 7,659.44, down 84.62 points. The Dow Jones Industrial Average fell 175.28 points, or 0.3%, to 52,002.41. The Nasdaq Composite and Russell 2000 also ended lower as technology and chip shares remained under pressure. The S&P’s percentage decline was steeper than the Dow’s.

Tesla shares initially rose in morning trading Friday, Oct. 16, after the company’s Roadster demonstration the previous day. They later fell as technology stocks sold off.

The demonstration showed the Roadster making brief airborne maneuvers with cold-gas thrusters and a suction system. Tesla claimed the car could accelerate from zero to 60 mph in less than one second. Tesla CEO Elon Musk said production was planned for 2028. Musk wrote, “Turns out the future does have flying cars.”

Separately, Federal Reserve Chair Kevin Warsh spoke with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Bangkok. The discussion was scheduled for 11:30 p.m. ET on Oct. 15 (03:30 UTC on Oct. 16), before U.S. stocks opened Friday.

Warsh said, “I don’t prejudge meetings.” He gave no specific rate path or signal about the Fed’s next decision. The Fed raised its target federal funds range by 25 basis points to 3.75%–4% on Sept. 16. The next meeting is scheduled for Oct. 27–28.