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Tesla stock is stuck in its worst sell-off since the company went public in 2010

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elon musk spacex GettyImages 111668836Elon Musk.

Associated Press

  • Shares of Tesla are down 62% since their peak in November 2021, marking the company’s largest drawdown since it went public in 2010.
  • That sell-off is worse than the 60.6% plunge Tesla saw in February to March 2020, per data compiled by Yahoo. 
  • Elon Musk has drawn ire for his Twitter antics, which many Tesla investors see as a distraction. 

While much of Elon Musk’s attention seems to be wrapped up in Twitter as of late, Tesla stock is enduring its worst sell-off since it debuted in public markets in 2010. 

Shares of the electric-vehicle maker are down roughly 62% since their peak in November 2021, and have shed more than 22% in December.

The recent slump is steeper than the 60.6% plunge Tesla saw during a month-long stretch in February to March 2020, which was the prior worst drop ever, according to Compound Capital data compiled by Yahoo Finance.

Aside from Musk’s involvement at Twitter, which some shareholders have warned is damaging Tesla’s stock price, the company is also facing manufacturing headwinds in China amid uncertain COVID-19 reopening plans.  

Musk also has pointed to the Federal Reserve as a reason for his car company’s $600 billion plunge in market value this year.

The CEO said via Twitter that the US central bank’s aggressive rate hike campaign has made the stock market less appealing to investors, and that Tesla, as a company, is executing better than ever.

—Elon Musk (@elonmusk) December 16, 2022

And despite Tesla’s long-standing dominance in the EV space, competitors are closing in. A November S&P Global Mobility report showed that Tesla holds a still-dominant 65% market share across all EVs registered through the first nine months of 2022, but that’s down from 79% in 2020. 

Meanwhile, shares of Tesla rose Monday after Musk posted a Twitter poll on Sunday asking whether people wanted him to step down as Twitter CEO. More than half of respondents backed a departure. 

Still, even with declining share prices, Tesla vehicle sales still have an upbeat outlook, according to S&P Global Mobility associate director for AutoIntelligence, Stephanie Brinley. 

“Before you feel too bad for Tesla, however, remember that the brand will continue to see unit sales grow, even as share declines,” Brinley said. “The EV market in 2022 is a Tesla market, and it will continue to be, so long as its competitors are bound by production capacity.”

Read the original article on Business Insider
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