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Tesla (NASDAQ:TSLA) shares slid about 3% at the open Monday, weighed down by Moody's downgrade of the U.S. sovereign rating to Aa1 from Aaa.
The broader market also opened lower after Moody's flagged rising federal debt and interest costs. The Dow Jones Industrial Average and S&P 500 fell, while the Nasdaq dipped, following the late-Friday rating action.
Tesla stock is trading around $337, remaining roughly 30% below its 52-week high of $488.54.
The EV maker had posted four straight weeks of gains on upbeat trade-talk news, despite downbeat registration figures in Europe and China. Recent data showed Tesla deliveries in China down 6% year-on-year in April amid factory upgrades and a delayed Model Y refresh.
Investors will now look to upcoming management commentary on production updates, as Tesla balances short-term delivery headwinds with long-term ambitions in autonomous ride-hailing and robotics.
This article first appeared on GuruFocus.