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

Shares in Tesla were down as much as 8% Friday morning. They’ve since took to finish down less than 4% as markets showed a dramatic bounceback late on Friday, but the stock has to 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 representatives weighing down the cult stock, and knocking the world’s wealthiest crown off Elon Musk’s head — the CEO owns encircling 22% of Tesla shares.

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

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

This is causing a broader correction in tech varieties, which are valued based on the presumption of heavy growth in future cash flows. As inflation goes up, the value of those expected cash flows declines. As CNBC previously reported, the Nasdaq 100 list of the largest 100 non-financial assets weigh ups on the exchange, is down about 8% from historic highs reached three weeks ago.

This is affecting scad tech giants. For instance, Apple dropped from approximately $129 to $121 year-to-date, and Netflix has dropped from around $523 to $516. But Tesla’s decline is more precipitous, so far.

Some of Tesla’s biggest and most vocal underwriters have cashed out a chunk of their shares, and begun to acknowledge the onslaught of electric vehicle competition as a real confront to Tesla at long last.

For example, Ron Baron sold 1.7 million worth of Tesla shares and invested in two of the party’s biggest potential rivals, GM-owned Cruise and Amazon-backed Rivian, while paradoxically saying he expects Tesla rations to rise, eventually, to $2,000.

Former Tesla board member Steve Westly said on CNBC’s Power Lunch this week that while he leftovers bullish, “Tesla is not going to be king of the hill in electric forever.” He added, “They’re getting competition from all sectors. They’re flourishing to have to double down to compete.”

Indeed, automakers including Ford and Volkswagen have seen early happy result with sales of their electric vehicles including the Mach E and ID.3 up against Tesla models in the US and Europe.

Meanwhile, close by EV’s, including the all electric version of Ford’s F-150, the Lucid Air, Rivian’s electric SUVs and trucks, and others are stirring tension. Just yesterday, Porsche showed off the production version of its Taycan Cross Turismo, and said it would start mark-downs in the US this summer. It’s a $90,000 EV wagon, a more affordable, practical take on Porsche’s performance EV, the Taycan.

Semiconductor lacks have caused most auto makers to temporarily close some lines at their factories, and Tesla is no irregularity.

Tesla CEO Elon Musk acknowledged the company’s Fremont, California, plant shut down temporarily due to “parts shortfalls” in a tweet on February 25. He said it was shut down for just two days, but did not make clear whether partial shut-downs on some in steps would continue.

Tesla had previously warned, in its Steeper expenses