Tesla shares fell for the 8th straight day making a record of the longest losing streak for the electric vehicle maker fuelled by global slowdown as well as china mismanagement concerns.
The stock dropped 11.46% on Wednesday making it one of the worst-performing stocks of the day. The year has been pretty rough for the electric car maker as the purchase of Twitter as well as weak global markets have put a dent on Tesla’s share price. This stock is poised to add to a 70% loss this year which has put Tesla among the worst performers on the s&p 500 index in 2022. The premarket price suggests a further $12.3 billion loss in the market cap. The company’s net worth is already below that of walmart inc, jp morgan chase, and nvidia corp after this year’s slump
Tesla has said that they are planning to reduce production in their Shanghai factory, suggesting a drop in demand. Another report which came out last week suggested that Tesla is offering US consumers a $7500 discount to take delivery of its two highest-volume models. Both of these statements concerned the investors who have invested in the company as the future growth prospects of the company is at a significant risk
Tesla’s 2022 Collapse Hits 69% After Deepest Selloff Since April. The growth stocks are performing very badly this year as they have been hammered down to their intrinsic value. Nasdaq 100 slumped 34% this year as the Federal reserve hiked the interest rates aggressively to tame inflation. Tesla was the second biggest loser on the index this year just after amazon. A massive turnaround from the company’s 1163% rally over the past two years.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank said that “It feels like confidence is gone, and Tesla’s fairy tale suddenly ended Investors are more eager to see how the looming recession will hit Tesla demand, how competition from other electric-vehicle makers will impact Tesla’s market share, and when Elon Musk will stop messing elsewhere while Tesla is shaking badly.”
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