The continued market sell off of Tesla Inc NASDAQ: TSLA is lower Monday due to concerns over Fed policy tightening that pressures growth sectors such as EVs.
The Federal Reserve is expected to hike interest rates and reduce the amount of bonds it buys each month. It's expected that the central bank will begin to cut the $9 trillion in assets it holds.
When the minutes from the December meeting of the Fed were released at the beginning of January, investors started to fear that all three of these situations could take place at the same time.
The meeting summary showed that Fed members are ready to start raising interest rates and ending bond buying. The Fed said it was ready to engage in discussions about reducing holdings of Treasurys and mortgage-backed securities.
Investor concern has been caused by the weakness in shares of Netflix Inc NASDAQ: NFLX after the company's quarterly financial results.
After the market closes on January 26th, Tesla is going to announce its fourth quarter financial results.
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The price of TSLA Price Action: Tesla has traded as low as $539.49 and as high as $1,243. 49 were over a 52 week period. In the year 2021, Tesla's shares went up by 50%, surpassing the S&P 500 and Dow Jones Industrial Average.
The stock was down 5.39% at $893.58 at the time of publication.