Tesla Inc (NASDAQ:TSLA) shares are trading lower Monday as several companies in the broader consumer discretionary sector fall amid overall market weakness as market participants prepare for the Federal Reserve’s Jackson Hole symposium on Friday.
The Jackson Hole Symposium is an annual economic summit featuring central bankers, academics and economists from around the globe. During the event, Fed chair Jay Powell is expected to give a speech on inflation.
The Fed raised its target fed funds rate by 0.75% in June and again in July. The two consecutive 0.75% rate hikes mark the most aggressive rate increases since 1994. Still, the central bank is fighting the highest inflation numbers in more than 40 years.
The bond market is pricing in a 56.5% chance of another 0.75% hike next month and a 43.5% chance of a 0.5% hike. Ongoing tightened monetary policy could continue to weigh on consumer spending on non-essential goods.
Related Link: Jackson Hole Symposium Preview: Why Powell’s Friday Speech Is Critical For Investors
Tesla CEO Elon Musk announced over the weekend that Tesla will increase the price of its full-self driving package to $15,000 in North America, beginning Sept. 5. Musk also confirmed that FSD beta 10.69 was released for some Tesla owners on Saturday.
The 10.69.1 beta version is expected to be released on a larger scale by the end of the week and 10.69.2 is expected to be rolled out to all FSD beta participants within a few weeks, according to Musk.
TSLA Price Action: Tesla has a 52-week high of $1,208 and a 52-week low of $620.57.
The stock was down 2.84% at $864.73 at press time, according to Benzinga Pro.
Photo: courtesy of Tesla.
