at numerian Capital we bring you the latest stock news each day please like And subscribe so we can bring these articles to you each day thank you today September 22nd 2023 is kathywood giving up on Tesla stock here's why some investors aren't as bullish as they once were on Tesla shares of Tesla stock continue to come under pressure down more than 3 percent today this move comes amid reports that Kathy Wood is selling shares Woods funds cumulatively sold roughly 170 000 shares in recent days the stock market as a whole is seeing some selling pressure build this week if things end today on the Market's current trajectory we could be set up for one of the worst weeks in a while for Tesla NASDAQ TSLA it's been an even more precarious ride with Tesla stock down nearly 7 over the past week and More Than 3 percent today underperforming the overall Market there are many reasons for this decline on the macro front this week's Federal Open Market Committee meeting in which the Federal Reserve held rates steady provided downside momentum for both Bond and Equity markets that's because despite this pause expectations are that the FED will raise rates one more time this year that would put even more pressure on valuations of high growth stocks like Tesla and continue to put pressure on auto loan rates which are already Sky High relative to where they've been over the past decade additionally reports that long-time Tesla bull Kathy would has dumped more shares of Tesla stock have some growth investors concerned recent reports indicate that would sold more than 170 000 shares across all her funds over the past week let's dive into what investors may want to make of these recent developments Tesla stock sinks as investors price and risks personally I think Tesla's decline this week has more to do with the macro environment than news about Kathy Woods buying and selling activity as an active manager Wood's job is to adjust her portfolio on a very frequent basis this has often meant selling her winners and buying underperforming stocks at least since the market peaked in early 2022 for growth stocks Tesla investors now have to factor in higher for longer rates into their models from a valuation standpoint most investors know that discount rates matter however I think the bigger issue for Tesla is the reality that auto loans could continue higher from here another quarter-point rate hike would likely flow through to higher auto loan rates which currently stand at an average of 6.44 as of last week this number assumes an average FICO score of 714. the U.S averages of August 30th for a new car used car rates are substantially higher making the car buying experience won many households simply dread for those with deep subprime FICO scores between 300 and 500 auto loan rates are 14.18 for new cars and 21.38 for used vehicles many buyers will simply be priced out of the automobile Market demand for Tesla vehicles which remain near the higher end of the price Spectrum for most buyers despite price Cuts is likely to diminish the higher interest rates go and the longer they stay at these levels for those considering Tesla stock this is perhaps the biggest consideration right now thanks for watching
