At this point, it might be easier to change a tire on a Model S in less than 10 minutes than trying to call a bottoming out on a Tesla (TSLA) whipped broth.
Shares of the electric vehicle maker fell 11.4% in Tuesday’s session on reports about the company It will operate at reduced capacity at its main factory in Shanghai During January, raising new doubts about the current pace of consumer demand. Tesla’s bar page was among Top 3 visited on Yahoo Financeunderscoring the ongoing concern about the ever-volatile stocks.
Shares fell as much as 4% in pre-market trading on Wednesday before rebounding.
In the wake of the recent plunge, the staggering stats for Tesla’s share price (and anything connected to it) are becoming even more surprising:
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1 month: -41%
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Three months: -60%
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Six months: -55%
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Year-to-date: -70% (S&P 500-19%)
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The market value has lost since the beginning of the year to date: $ 241 billion
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Elon Musk’s net loss year-to-date: – $141 billion
Analysts stress that a bottom is not yet in sight for the stock despite the painful sell-off into 2023.
“Musk unleashed this five alarm fire on Tesla stock and only he can put it out. It’s a perfect storm between the Musk Twitter fiasco and now asking for crack,” Dan Ives Yahoo Finance.
In large part, the fact that no one on the street is trying to put a bottom call on Tesla stock reflects the increasingly bad news swirling around the company.
First, passive optics are on demand in both the US and China.
Tesla said on its website last week It will offer discounts of $7,500 on Model 3 and Model Y cars Delivered in the US in December. This coincides with analysts lowering delivery estimates for the fourth quarter ahead of it It was reported in early January.
Then the elephant in the room remains – Musk continuing to make a mess on Twitter and how that could affect Tesla’s operations.
The prospect of Musk selling more shares to fuel his Twitter shift also weighed on the stock. Musk said in a new conversation on Twitter a week ago that he wouldn’t sell any more Tesla stock until 2024 at the earliest. He made similar statements this year Only to sell more shares later.
In other words, investors don’t believe Musk in this regard – and they are expressing this point of view out loud.
Add all of this together, along with the fact that Tesla shares are still trading Rich evaluation multiples For the broad market, and you have a selling event that may not have run its course until a clear positive development is seen. (Analysts say Musk’s handover to the Twitter CEO would be a big help.)
Ives added, “We think the stock is oversold but it will be a tough road ahead.”
looks correct.
Brian Suzy It is a comprehensive editor and Anchor at Yahoo Finance. Follow Suzy on Twitter @employee and on linkedin.
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