Shares of electric and clean energy vehicle companies, including Lucid Group Inc NASDAQ: LCID Rivian Automotive Inc NASDAQ: RIVN and NIO Inc NYSE NYSE: NIO, are trading lower Tuesday afternoon due to continued market sell off as concerns over Fed policy tightening continue to pressure growth names.
The Federal Reserve will hike interest rates and reduce the amount of bonds it buys each month, according to investors. It's also expected that the central bank will begin to reduce the $9 trillion in assets it holds.
The December meeting summary shows that the Fed is ready to start raising interest rates and tapering bond buying. The Fed said it was prepared to engage in discussions about reducing holdings of Treasurys and mortgage-backed securities.
Those conversations will probably go up in the next week, according to the meeting. The decision of FOMC is due at 2 p.m. The Fed chairman Jerome Powell is expected to hold a press conference on Monday.
The 10 year U.S. Treasury yield was 1.785% at the time of publication. The recent EV market entrants have been affected by rising yields.
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LCID, RIVN, NIO Price Action: Lucid was down 5.43% at $35.70, Rivian was down 6.47% at $59.79 and Nio was down 3.46% at $24.01 Tuesday afternoon.