Tesla stock was lower early Tuesday after an epic Monday, as the car industry looks for solutions to rising commodity prices.
Shares of the EV maker were down 0.7% at $409.16, while S&P 500 and Dow Jones Industrial Average futures were up 0.1% and 0.2%, respectively. Tesla stock gained 8.5% on Monday, rising roughly $30 a share, more than wiping out $20-per-share losses of the prior week.
Tuesday's early move came as Reuters reported that several auto makers were using some aluminum wiring instead of copper.
Benchmark copper prices are north of $6 per pound, near record highs, and up more than 20% over the past 12 months. Aluminum prices are up more than 100% over the past year. Still, aluminum is less than $1.50 per pound.
Aluminum, while cheaper, is also lighter than copper. It does have some more engineering problems than copper, including poorer conductivity, corrosion, and brittleness. But auto makers can overcome much of that.
The industry has been using more aluminum in wiring for a while. Tesla has been a leader in this trend, for instance, securing patents on aluminum alloys with high electrical conductivity.
The use of more aluminum is an example of how high commodity prices lead engineers to seek alternatives, thereby lowering demand for the high-priced commodity.
Copper and aluminum prices should have only a minor impact on Tesla stock in the coming days. Investors will be waiting for second-quarter delivery results on Thursday. Analysts project about 409,000 cars sold, up from about 384,000 in the second quarter of 2025.
Write to Al Root at allen.root@dowjones.com
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June 30, 2026 07:41 ET (11:41 GMT)
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