Tesla stock is heading for its worst month, quarter and year on record

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Teslas the sell-off intensified on Tuesday, with the stock falling another 8%. Elon Musk’s electric car company is just days away from wrapping up its worst month, quarter and year on record and has passed Meta to become the worst-performing stock of 2022 among the most valuable technology companies.

The latest drop comes after the Wall Street Journal reported that Tesla will continue a week-long shutdown of production at its Shanghai plant as it faces a fresh onslaught of Covid cases among its Chinese workforce.

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Reuters reported that Tesla’s Shanghai plant, when it reopens in January, will do so for just 17 days, in a break from Tesla’s established practices. Shanghai has been hit by a new wave of Covid infections this month.

Tesla stock has fallen over 70% since its record high in November 2021. The stock is down over 68% in 2022, roughly double the Nasdaq’s decline. Among the major automakers ford Ice by 45% and General Motors has fallen by 43%. Since its IPO in 2010, Tesla has fallen in just one more year, down from 11% in 2016.

For the month of December, Tesla is down 43%, easily its worst month ever, having never fallen more than 25% in a single month. And in the fourth quarter, the stock is down 58%, worse than the 38% drop in the second quarter of this year, which was its worst period on record.

Last week, Tesla expanded rebates in North America for buyers of Model 3 and Model Y electric vehicles. Those rebates came after the automaker offered December auto sales incentives in mainland China earlier this month.

Meanwhile that TwitterMusk has continued to flirt with controversy, welcoming back previously suspended users, allowing continued publication of internal messages related to the company’s past handling of Covid and election-related content, and flipping on policy changes.

Companies have paused or suspended paid advertising on the platform, prompting outbursts from Musk.

Twitter is bleeding money and Musk is selling Tesla stock in bulk. According to documents in mid-December, Musk sold about 22 million more Tesla shares worth about $3.6 billion. Earlier this year, Musk shared with his millions of followers on social media that he had done so “no further TSLA sales planned” after April 28th

Dan Ives of Wedbush Securities wrote in a report on Tuesday that Musk’s leadership issues potentially raise deeper issues for the automaker.

“As Tesla cuts prices and inventories begin to build around the world in the face of a likely global recession, Musk is seen as ‘sleeping at the wheel’ from an executive perspective,” wrote Ives, who maintained his buy rating on the stock.

Tesla investors want Musk to refocus his efforts on stabilizing the company that makes up the majority of his wealth. Due to the ongoing sell-off, Musk ceded his title of world’s richest person to LVMH Chairman and CEO Bernard Arnault earlier this month, according to Forbes.

“I think he needs to really focus on operations, focus on giving us great cars,” said Roth Capital analyst Craig Irwin, who has a hold rating on the stock and an $85 target price .

As of Tuesday afternoon, Tesla was trading at around $112.

— CNBC’s Lora Kolodny contributed to this report.

SEE: Elon Musk needs to focus on operations at Tesla

Elon Musk needs to focus on operations at Tesla, says Roth Capital's Craig Irwin

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