Tesla underperformed as rising energy prices and Middle East tensions weighed on risk assets, ending a three-quarter S&P 500 rally.
Tesla (TSLA) declined in Q1 2026, closing at $442.10 on May 28, as the Impax US Sustainable Economy Fund underperformed the Russell 1000 benchmark. The fund’s lack of exposure to the surging Energy sector and escalating Middle East tensions drove risk aversion, lifting energy prices and inflation expectations.
The S&P 500’s three-quarter winning streak ended amid the shift, despite initial support from solid corporate earnings and falling bond yields. Tesla’s shares posted a 12.39% one-month return and a 26.78% gain over the past 52 weeks, though Q1 weakness contrasted with broader market resilience earlier in the year.
Investors are refocusing on renewables, grid upgrades, and energy-efficient technologies to address security and inflation concerns.