Tesla Stock Continues To Lose Value

Tesla Stock is loosing value

It’s been a rough year for Tesla stock.

Shares of the electric-vehicle maker have lost 69% in 2022 through Tuesday, making it the worst performer among major companies in the S&P 500. Facebook parent Meta Platforms isn’t very far behind, down 65% through Tuesday’s close.

Tesla Stock

On an overall basis, Tesla is headed for the third-worst performance in the S&P 500 this year. It only trails two much smaller companies by market value: Generac Holdings, a maker of power-generation equipment, and dating-app company Match Group, which have lost 74% and 70%, respectively.

Tesla’s slump is a stunning turnaround for a company that was the largest-ever addition to the S&P 500 when it joined the bluechip index in late 2020. That year, the stock vaulted straight into the S&P 500’s top 10, amid voracious demand from professional and retail investors for the stock.

This year, some of the exuberance has faded. On Tuesday, Tesla fell off the top-10 list. Its shares have been battered by a retreat from growth stocks and investor fallout from Tesla Chief Executive Elon Musk’s purchase of Twitter. Tesla stock took another dive Tuesday, after the company extended a production halt in Shanghai according to Bloombergsubscription.net

Tesla stock staged a modest rebound in premarket trading Wednesday, recently standing 2.7% higher.

Tesla Inc. TSLA -11.41%decrease; red down pointing triangle is on pace for its worst annual stock performance on record as investors bristle at Elon Musk‘s Twitter Inc. ownership, as well as declining demand for the car company’s electric vehicles and slumps in the broader market in a higher interest rate environment.

Tesla’s share slide marks a sharp reversal for the world’s most valuable car company. The electric-vehicle maker had been one of the auto industry’s biggest winners during the early 2020s, a period plagued by chip shortages, snarled global supply chains and shutdowns related to Covid-19.

 Tesla Profits

Tesla entered 2022 from a position of strength, buoyed by better-than-expected results throughout the Covid-19 pandemic and strong vehicle pricing.

The company has delivered more than a dozen consecutive profitable quarters, helping the electric-vehicle maker that once had a record of being starved for cash in building up a roughly $20 billion cushion, rivaling that of some legacy car manufacturers reports the WSJ Renewal.

Wall Street jitters
Wall Street tempered its expectations for Tesla’s growth this year after an extended Covid-related shutdown of the company’s largest assembly plant, located in Shanghai.

Now rising interest rates and global economic uncertainty have stoked concern that demand for new vehicles might be weakening.

Readily available

As recently as earlier this year, customers faced monthslong waits for many Tesla models. No longer.

Tesla cut prices in China this fall and is offering various incentives to move cars off the lot and into customers’ driveways before the new year. In the U.S., Tesla is offering buyers of certain EVs a $7,500 credit and 10,000 miles of free fast-charging if they agree to take delivery this month.

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