Tesla closes below $600 for the first time since December — here’s what’s weighing the stock down

Tesla Motors CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne, California October 9, 2014.

Lucy Nicholson | Reuters

Shares in Tesla were down as much as 8% Friday morning. They’ve since recovered to finish down less than 4% as markets showed a dramatic bounceback late on Friday, but the stock has still lost more than 15% of its value the year, and finished below $600 for the first time since Dec. 4.

Here are some of the biggest factors weighing down the cult stock, and knocking the world’s wealthiest crown off Elon Musk’s head — the CEO owns about 22% of Tesla shares.

Fed fears

On Thursday, Fed Chairman Jerome Powell said that “upward pressure on prices” and “transitory increases in inflation” might be coming to the U.S. as the economy reopens following a year of Covid restrictions that hit businesses across the board.

The market is now worried that interest rates will climb, and the feds won’t take aggressive policy actions or even be able to control it. Bond yields are surging.

Rivian’s R1T pickup


Bulls acknowledge competition

A close up image of a CPU socket and motherboard laying on the table.

Narumon Bowonkitwanchai | Moment | Getty Images

Part shortages

The freight traffic center in the Gruenheide region east of Berlin. Tesla plans to build its new European Gigafactory in a huge forest nearby.

Patrick Pleul | picture alliance via Getty Images

Steeper expenses

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