Tesla set for longest-ever losing streak as 69% plunge deepens
1 min read . Updated: 28 Dec 2022, 04:21 PM IST
PremiumThe stock dropped 3.6% at 4:40 a.m. in New York, poised to add to a 69% loss this year which has put Tesla among the worst performers on the S&P 500 Index in 2022
Shares in Tesla Inc. are set to fall for an eighth straight day — the longest-ever losing streak for the electric vehicle maker — amid concerns about ebbing demand and wider jitters about growth assets.
The stock dropped 3.6% at 4:40 a.m. in New York, poised to add to a 69% loss this year which has put Tesla among the worst performers on the S&P 500 Index in 2022. The premarket price indicates a further $12.3 billion loss of market capitalization, with the company’s value already below that of Walmart Inc., JPMorgan Chase & Co. and Nvidia Corp. after this year’s slump.
nw after Reuters reported that Tesla plans to reduce production at its Shanghai factory, rekindling fears about demand. That added to concerns sparked by a separate report last week that Tesla was offering US consumers a $7,500 discount to take delivery of its two highest-volume models before year-end. For Tesla, whose valuation is pinned on its future growth prospects, these worries reflect a significant risk.
Tesla’s 2022 Collapse Hits 69% After Deepest Selloff Since April
Growth stocks have been hammered this year, with the Nasdaq 100 slumping 34% as the Federal Reserve hiked interest rates aggressively to tame inflation. Tesla was the second-biggest drag on the index after Amazon.com Inc., with this year’s plunge marking a stark turnaround from the company’s 1,163% rally over the prior two years. Elon Musk’s disposals of Tesla stock and the distraction caused by his Twitter takeover also haven’t helped.
“It feels like confidence is gone, and Tesla’s fairy tale suddenly ended," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “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."
