Tesla stock has now seen one of the biggest drops in history
Tesla shares is in the midst of its biggest drawdown since the company went public back in 2010.
According to data from compound capital.
The recent 407-day selling pressure overshadowed a 60.6% drop from the 28-day high seen from February 19, 2020 to March 18, 2020 (chart below), when the COVID-19 pandemic began. market worldwide.
More recently, Tesla stock fell 22% in December alone.
The drop for the once-banking carmaker reflects a number of factors.
First, the risk of operational errors at Tesla increased as Musk focused on restructuring Twitter.
Dan Ives, CEO of Wedbush, who has become increasingly critical of Musk in 2022, told Yahoo Finance: “Musk has gone from being a superhero to Tesla stock to becoming a villain in the eyes of the Road. street as the overhang increases with each tweet.”
Concerns remain around Tesla’s production problems and sales speed in China amid the uncertain approach to the country’s COVID-19 policies.
Final, compete in the electric vehicle space in the U.S. only strengthened this year — raising the risk of slowing growth for Tesla in 2023 and beyond.
On the first and most immediate issue, others on the Street agree with Ives that the breakdown at Twitter is the most pressing issue for stocks right now, and will likely remain so through 2023.
“Tesla’s brand has become more polarized,” Goldman Sachs analyst Mark Delaney said in a note this week. “We believe that Tesla’s brand is of significant value in relation to the company’s leadership in clean energy and innovative technology. The consumer focus associated with Tesla shifts back to properties. This core of sustainability and technology will be critical in our view if Tesla is to meet or exceed long-term investor expectations for Tesla.”
Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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