Tesla slides after the Fed meeting cuts into the bullish vibe

Tesla (NASDAQ:TSLA) fell sharply on Wednesday after the Federal Reserve’s interest rate outlook dampened the spirits of investors. The EV stock had carved out a new all-time high of $488.50 before the selling pressure picked up.

The main investor focus on Wednesday was on the Federal Reserve’s updated Summary of Economic Projections, or dot plot, which suggested two rate cuts next year, compared to three previously in September. Meanwhile, the central bank’s estimates for inflation increased. Those developments resulted in a sudden spike in Treasury yields and a broad market sell-off, which encapsulated Tesla (TSLA) along the way.

The EV stock was down 7.45% at 3:48 p.m and was the second-largest decliner in the S&P 500 Index. TSLA managed to pare a decline that was right at 10% within an hour of the FOMC press conference. For reference, Tesla (TSLA) is still up more than 28% over the last six weeks and has more than tripled from its 52-week low.

The Seeking Alpha Quant Rating on Tesla (TSLA) is Hold. Wall Street and Seeking Alpha analysts also have consensus Hold ratings on the stock.