Tesla (TSLA 0.38%) investors have been seeing the electric vehicle stock stumble as of late and they aren't getting any reprieve today. The company's stock was stumbling once again today, likely as investors processed several bits of news including the Securities and Exchange Commission (SEC) scrutiny of CEO Elon Musk's Twitter purchase, rising inflation, and an analyst's price cut for Tesla's stock.
The EV maker fell by as much as 7.4% this morning and was down by 1% as of 12:28 p.m. ET.
First up is the SEC's probe into Musk's purchase of Twitter. Yesterday, The Wall Street Journal reported that the SEC was looking into whether or not Musk broke a rule when he disclosed his stake in Twitter.
According to the report, Musk reported his stake a week later than he should have and also used a filing that's usually reserved for passive investors.
Tesla investors aren't keen to have Musk in the sights of the SEC again and it's likely that some of them are selling off shares as a result today.
Additionally, Tesla's shares may be falling in response to an investor note by Wells Fargo analyst Colin Langan, who maintained an equal-weight rating on Tesla's stock today but lowered his price target from $960 to $900.
And if all that wasn't enough to send Tesla's share price falling today, general worry from investors about the U.S. economy isn't helping either. An inflation report came out yesterday showing that inflation is still stubbornly high -- at 8.3% in April -- and that's making investors increasingly concerned that aggressive interest rate hikes by the Federal Reserve will be needed.
With more rate hikes likely on the way this year, investors are fleeing high-growth stocks in search of seemingly more stable investments.
Tesla investors have already been on a wild ride lately, with this stock plunging 31% over the past six months.
Musk's purchase of Twitter isn't making things easier for himself or Tesla shareholders. And with investors already nervous about rising inflation and a potential economic slowdown, I think Tesla investors should continue to keep a bottle of antacid handy, at least for a little while.