At this point, it may be easier to change a tire on a Model S in under 10 minutes than to try to call a bottom in Tesla's (TSLA) battered stock.
Shares of the EV maker tanked 11.4% on Tuesday's session on reports the company would run at reduced capacity at its key Shanghai plant through January, which raised fresh doubts on the current pace of consumer demand. Tesla's ticker page was among the top three visited on Yahoo Finance, underscoring the ongoing angst on the always volatile stock.
Tesla's decline finally took a bit of a breather on Wednesday, as it was up slightly above the flatline.
But in the wake of the latest drop, the startling stats on Tesla's stock price (and anything tied to it) became that much more jaw-dropping:
One-month: -41%
Three-month: -60%
Six-month: -55%
Year-to-date: -70% (S&P 500 -19%)
Market cap lost year-to-date: $241 billion
Elon Musk net worth lost year-to-date: -$141 billion
Analysts contend the bottom is not yet in sight for the stock despite the bruising sell-off into 2023.
"Musk set off this five-alarm fire on Tesla's stock and he is the only one that can extinguish it. It's a perfect storm between the Musk Twitter fiasco and now demand cracking," Wedbush analyst and vocal Musk critic Dan Ives told Yahoo Finance.
In large part, the fact no one on the Street is trying to make a bottom call on Tesla's stock reflects the mounting bad news swirling around the company.
First are the negative optics on demand both in the U.S. and China.
Tesla said on its website last week it will offer $7,500 discounts on Model 3 and Model Y vehicles delivered in the U.S. in December. That coincides with analysts slashing fourth-quarter delivery estimates ahead of them being reported in early January.
Then the elephant in the room remains — Musk's continued chaotic running of Twitter and how it may impact the operations of Tesla.
The prospect of Musk selling more shares to fuel his turnaround at Twitter have also weighed on the stock. Musk said in a new Twitter spaces chat a week ago he wouldn't sell anymore Tesla shares until 2024 at the earliest. He has this year made similar proclamations only to subsequently sell more stock.
In other words, investors simply do not believe Musk in this regard — and they are voicing that view loudly.
Package all this up, along with the fact Tesla shares still trade on rich valuation multiples relative to the broad market, and you have a selling event that may not have run its course until a clear positive development emerges. (Musk handing over the CEO reigns at Twitter would be a huge help, analysts say.)
Added Ives: "We believe the stock is oversold, but it will be a rough ride ahead."
Sounds about right.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
Yahoo Finance Live anchors discuss Tesla stock performance as the EV maker heads towards its worst year on record.
The new electric vehicle tax credit provision in the Inflation Reduction Act has heightened trade tensions between the U.S. and other auto-producing countries.
Galaxy will also loan $35 million to Argo as part of the deal.
(Bloomberg) — President Yoon Suk Yeol said he wants to put South Korea on a path of overwhelming military strength against North Korea and pledged to boost defenses against drones after his neighbor sent five across the border this week.Most Read from BloombergMilan Reports 50% of Passengers on China Flights Have CovidWall Street’s Top Stars Got Blindsided by 2022 Market CollapseGoldman CEO Solomon Says Job Cuts Are Coming Next MonthStocks Post Month’s Best Day as Rate Surge Fades: Markets Wrap
The patient is in the final stages of inoperable cancer.
If you’re waiting for a housing market crash, or a correction in prices that will make your dream home more affordable, the data shows you’re not alone. Single-family home sales fell for the 10th straight month in November to less than 4.1 million — down 3.5% from the same time last year. Read also: Will Homeownership Soon Be A Thing Of The Past? The Strategy Millennials Are Using To Enter Real Estate Market This means more potential buyers are sitting out, likely waiting until interest rates (c
After an abysmal year, analysts are making their best guesses for where Bitcoin goes in 2023. The macro backdrop and industry dynamics are both uncertain.
Maine is making the fastest strides among New England states in preparing for climate change, according to a new analysis.
As angry as passengers have been during this past week of delayed and canceled flights, lost luggage, and being stranded far away from friends and family during Christmas, that was apparently nothing compared to what Southwest Airline ground crew workers experienced, according to a union letter claiming some workers developed frostbite during 16-hour shifts where they were exposed to sub-zero temperatures for extended periods.
After Monday’s announcement that passengers coming into China would no longer face quarantine, citizens are racing to secure vacations in Thailand, Japan and South Korea.
"It does seem like we're headed into a recession here in 2023," Musk said on the "All-In Podcast" last week.
The Right Stuff, the dating app that offers an alternative to all those other “woke” apps, is reportedly experiencing a dearth of users and new downloads three months after release. The Daily Beast first reported that two separate analytics companies have seen a staggering drop off in downloads since the app came online back in September.
Tesla shares rose slightly Wednesday, and Generac jumped after the stock was initiated with a Buy rating by analysts at Janney Montgomery Scott.
Social media platform Twitter is back up and running after experiencing a widespread outage Wednesday night that affected thousands of users. According to Downdetector, an online platform that provides the real-time status of various websites and social media platforms, more than 10,000 reports of outages on Twitter were made by U.S. users of the platform. …
Bad news for Morrissey fans: Morrissey is in the news again (it’s always bad when that happens). This time, rather than saying or doing something awful (oh hey, maybe this is good news), ol’ Moz simply announced on the official Morrissey website that Miley Cyrus has requested to be removed from a track called “I Am Veronica” for the still-unreleased album Bonfire Of Teenagers. Cyrus apparently recorded backing vocals for the song years ago, but the only indication we have for why this is happeni
But if Netflix's Zillow listing had you fooled, you're not alone.
Coinbase has made significant efforts to keep several different cases limited to arbitration and out of federal courts in recent months.
A surge in Covid-19 cases in China creates a sense of fear among Indians about a fourth wave.
Thalassotitan teeth. Nicholas LongrichSixty six million years ago, sea monsters really existed. They were mosasaurs, huge marine lizards that lived at the same time as the last dinosaurs. Growing up to 12 metres long, mosasaurs looked like a Komodo dragon with flippers and a shark-like tail. They were also wildly diverse, evolving dozens of species that filled different niches. Some ate fish and squid, some ate shellfish or ammonites. Now we’ve found a new mosasaur preying on large marine animal
UW opened the season unranked and picked to finish ninth in the Big Ten. The Badgers are No. 15 in both polls and 2-0 in the league.
