Tesla Inc. (NASDAQ:TSLA) shares dropped approximately 4% Tuesday morning. The decline follows a broader market sell-off triggered by April's Consumer Price Index (CPI) report.

The Nasdaq is down 1.26% while the S&P 500 has shed 0.72%.

Inflation Tops Forecasts

The Bureau of Labor Statistics reported Tuesday that headline inflation climbed to 3.8% year-over-year in April. This topped economist expectations of 3.7%.

The outcome marks the hottest reading since May 2023. Monthly prices rose 0.6%, matching the consensus.

Traders now price a 70% probability of a Fed rate hike by April 2027.

Energy Shocks Weigh On Sentiment

Geopolitical tensions added pressure to the tape. An energy shock from the Strait of Hormuz blockade impacted the CPI basket. The energy index rose 3.8% in April alone.

Critical Levels To Watch for TSLA Stock

Tesla is still trading above all its key moving averages, including the 20-day SMA ($391.39), 50-day SMA ($384.04), 100-day SMA ($410.09), and 200-day SMA ($405.08), which keeps the ...