Tesla (NASDAQ:TSLA) shares have fallen sharply in premarket trading on Monday, down more than 7% as part of a broader tech sell-off driven by disappointing economic data.
The decline comes on the heels of weaker-than-expected jobs reports last week, which reignited fears regarding the economy.
Tesla shares are currently trading around the $192.50 mark, its lowest level since June 26, 2024. The stock is down more than 16% this year, despite a 14% rise in the last three months. Electric vehicle demand concerns and worries about increased competition in China weighed on Tesla's stock earlier in the year.
The S&P 500 and Nasdaq Composite indices also faced significant declines premarket on Monday. Nasdaq 100 futures are down around 4.4%, while S&P 500 futures have fallen around 2.9%. Europe's Stoxx 600 benchmark has fallen over 2.5%.
The slide reflects widespread investor concerns. Last week's jobs reports, which saw weaker-than-expected non-farm payrolls and the unemployment rate rise to 4.3% in July, have led to renewed worries about economic resilience.
The tech sector, particularly, has been hit hard as investors reassess the growth prospects for high-flying stocks.
The broader market downturn highlights the fragile state of investor sentiment, with worries about potential policy missteps by the Federal Reserve adding to the uncertainty.
In a recent note, Wells Fargo analysts said that "the stance of monetary policy is quite restrictive at present," suggesting that the Fed may need to ease rates to prevent further economic deterioration.
"In our view, the FOMC needs to get back to a "neutral" stance of policy quickly or else it risks a vicious circle of labor market weakness leading to
sluggish spending, leading to further labor market weakness, etc," they added.