Why Tesla Shares Are Sliding Today

Tesla Inc TSLA is trading lower Monday amid a continued market sell-off as concerns over Fed policy tightening continue to pressure growth sectors such as EVs.

Investors have been preparing for the Federal Reserve to start hiking interest rates and reducing the amount of bonds it buys each month. It's also expected that the central bank will begin to cut the nearly $9 trillion in assets it's holding.

When minutes from the Fed's December meeting were released at the beginning of January, investors started fearing 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 tapering bond buying. The Fed also signaled that it's prepared to engage in conversations about reducing holdings of Treasurys and mortgage-backed securities.

Weakness in shares of Netflix Inc NFLX, following the company's quarterly financial results, has also caused investor concern ahead of earnings season.

Tesla is set to announce its fourth-quarter financial results after the market closes on Jan. 26.

See Also: Why Exterran Shares Are Soaring Today

TSLA Price Action: Tesla has traded as low as $539.49 and as high as $1,243.49 over a 52-week period. Tesla shares increased by about 50% in 2021, outperforming the S&P 500 and Dow Jones Industrial Average. 

The stock was down 5.39% at $893.58 at time of publication.

Photo: courtesy of Tesla.