Tesla, a leading electric vehicle manufacturer, has faced some difficulties in the year 2022. On 27 December, the company’s stock price fell by $14 to $109.10, following a previous closing price of $123. This marks the continuation of a declining trend for the stock, which reached a high of $402 earlier in the year before starting to fall continuously.
News about Tesla’s reduced production schedule at its Shanghai plant for the start of 2023 also contributed to the stock trading lower in the premarket on 27 December. The automaker will run production for 17 days between 3 and 19 January, and then halt EV output until the end of the month. This marks Tesla’s longest losing streak in over 4 years.
Tesla’s stock price has experienced a rapid decline in the year 2022, falling by about two-thirds of its value. This decrease can be attributed to a variety of factors, including Elon Musk’s Twitter takeover and the resulting distractions, investor concerns about the performance of growth assets, and most recently, fears that high inflation and rising interest rates will discourage consumers from purchasing electric vehicles (EVs).
Musk’s behavior on Twitter and other social media platforms has often been a source of controversy and has at times caused distractions for the company. In addition, some investors have grown wary of growth assets, including Tesla’s stock, as they consider the potential risks and uncertainties that may impact their performance. Finally, concerns about rising inflation and interest rates have led to speculation about the potential impact on consumer demand for EVs.
Despite these challenges, Tesla remains a strong player in the electric vehicle market and continues to innovate and push the boundaries of what is possible. The company has a solid track record of developing new technologies and introducing groundbreaking products, and it is likely to continue doing so in the future. While the stock price may have experienced some ups and downs in the year 2022, it is important to remember that the long-term outlook for the company is still positive.
Overall, it has been a challenging year for Tesla and its stock price, with a number of factors contributing to its decline. However, the company remains a leader in the EV market and continues to innovate and push the boundaries of what is possible.