For a while, one might still explain the crash of the Tesla share with a general weakness in the stock market and technology, but company-specific factors increasingly seem to be depressing the price. On Tuesday, it experienced one of its biggest one-day losses to date, falling 11.4 percent to $109.10, its seventh straight drop and a 44 percent loss in December alone. Overall, Tesla stock might have its weakest month, quarter, and year ever.
Factory breaks at Tesla in China
Since Tesla was high on the stock exchange last November at just under 410 dollars following the split lost around 73 percent following the double-digit minus on Tuesday. In the whole of 2022 it has been 69 percent so far and 59 percent in the current quarter. As early as the second quarter of this year, Tesla stock was up according to a Report from CNBC down 38 percent, which had been its highest quarterly loss to date.
According to stock market professionals, the share was burdened, among other things, by the Twitter takeover by CEO Elon Musk, which might also have a negative impact on Tesla’s business. In addition, there were massive stock sales by Musk. According to the latest from mid-December, he stated no further Tesla shares to be sold at least in 2023which he had similarly announced before.
Tuesday’s latest double-digit pullback is likely to have been triggered by reports that Tesla doesn’t plan to get everything it can out of its factory in China, which it upgraded just this summer, either in December or early in the new year. The production of Model 3 and Model Y has been there since Saturday, reported the news agency Archyde.com. From January 20th to the end of the month there should also be a longer break. Tesla, which initially denied reports of reduced production in December, confirmed the new report in principle, saying it was “not entirely accurate,” according to Chinese media.
Next purchase recommendations for Tesla
A majority of professional analysts continue to recommend buying Tesla stock. However, several have lowered their price targets, sometimes noticeably, in the past few weeks and especially days. In the short term, the result in the fourth quarter in particular should set the course for the future. According to fund manager Gary Black Wall Street now expects an average of 420,000 Tesla deliveries in the last quarter of 2022. Anything below that will be interpreted as an indication that Tesla has lost brand equity. Anything above that will likely skyrocket the stock.
