Tesla becomes worst-performing valuable tech stock of 2022
Electric car maker Tesla is ending the year on a bump after its shares fell to the lowest in two years, beating Meta to become the worst-performing stock in 2022 of the most valuable tech companies.
It comes as Elon Musk sold off about $23 billion (€21 billion) worth of Tesla stock this year to finance his Twitter purchase and faces investor backlash for spending too much time on the social media company.
Shares in Tesla fell 11 per cent on Tuesday, which totals a drop of 73 per cent from their record high in November 2023.
Musk said on Twitter Spaces on December 22 that he would stop selling Tesla stock for 18 to 24 months.
In a debate with a Tesla shareholder, Musk blamed the company’s declining share price on Federal Reserve rate hikes, tweeting that “people will increasingly move their money out of stocks into cash, thus causing stocks to drop”.
Meanwhile, Tesla will run a reduced production schedule in Shanghai, according to an internal document seen by Reuters. The company did not say why it would slow down production.
It comes as Tesla suspended production at its Shanghai plant on Saturday, pulling forward an established plan to pause most work at the plant in the last week of December.
Tesla's latest production cuts at Shanghai come amid a rising wave of infections after China stepped back from its zero-1COVID1 policy earlier this month. That move has been welcomed by businesses, although it has disrupted manufacturing operations outside Tesla.
Like other automakers, Tesla has also faced downturned demand in China, the world's largest auto market. Earlier this month, Tesla offered an additional incentive for buyers taking possession of vehicles in December.
The company has cut prices for Model 3 and Model Y cars by up to 9 per cent in China, in addition to a subsidy for insurance costs.
Shares in Tesla fell 11 per cent on Tuesday, which totals a drop of 73 per cent from their record high in November 2023.
Musk said on Twitter Spaces on December 22 that he would stop selling Tesla stock for 18 to 24 months.
In a debate with a Tesla shareholder, Musk blamed the company’s declining share price on Federal Reserve rate hikes, tweeting that “people will increasingly move their money out of stocks into cash, thus causing stocks to drop”.
Meanwhile, Tesla will run a reduced production schedule in Shanghai, according to an internal document seen by Reuters. The company did not say why it would slow down production.
It comes as Tesla suspended production at its Shanghai plant on Saturday, pulling forward an established plan to pause most work at the plant in the last week of December.
Tesla's latest production cuts at Shanghai come amid a rising wave of infections after China stepped back from its zero-1COVID1 policy earlier this month. That move has been welcomed by businesses, although it has disrupted manufacturing operations outside Tesla.
Like other automakers, Tesla has also faced downturned demand in China, the world's largest auto market. Earlier this month, Tesla offered an additional incentive for buyers taking possession of vehicles in December.
The company has cut prices for Model 3 and Model Y cars by up to 9 per cent in China, in addition to a subsidy for insurance costs.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
