Weakness in Tesla stock may be primarily related to a rough few weeks for growth stocks as investors seem spooked by news of a potential acceleration of the timeline for the Federal Reserve’s interest rate hikes.
Interestingly, Tesla stock’s decline on Monday comes as Time named Elon Musk its 2021 Person of the Year.
The stock is priced for significant free cash flow growth over the next 10 years — and small changes in the market’s opinion on how much it wants to pay up for estimates of future cash flows can have a dramatic impact on the way the stock trades.