Connect with us

Stocks

Why Tesla (TSLA) Stock Is Having Its Worst Year Yet

Tesla (NASDAQ:TSLA) stock is climbing slightly in early trading today and is trending on social media. Due to multiple issues and challenges, TSLA stock, which has sunk 58% in 2022, is poised to have the worst year in its history.
Previously, …

Tesla (NASDAQ:TSLA) stock is climbing slightly in early trading today and is trending on social media. Due to multiple issues and challenges, TSLA stock, which has sunk 58% in 2022, is poised to have the worst year in its history.

Previously, the worst year for Tesla’s shares was 2016, when it dropped 11%. In every other year before 2022, its share price has increased.

Advertisement

Issues and Challenges Facing TSLA Stock

China’s anti-coronavirus policies, which have featured strict lockdowns, have negatively impacted Tesla’s ability to produce its electric vehicles in the country. Additionally, the mitigation measures have lowered demand for Tesla’s electric vehicles (EVs) in China. Although Beijing has recently indicated it plans to ease the lockdowns, the Street is still worried they will persist over the longer term. Some suggest China’s economy may not regain its pre-coronavirus strength for many months.

Advertisement

In related news, Tesla has lowered its prices in China. However, Teslarati, citing unidentified “local reports,” states the orders for Tesla’s EVs in the country have been coming in below the automaker’s estimates. According to the website, rumors suggest Tesla will embark on another round of price cuts in China.

Spurring many additional worries about Tesla, the automaker’s CEO, Elon Musk, has acquired Twitter and, for now, seems to be running it on a day-to-day basis. Investors are concerned Musk’s attention will be diverted from managing Tesla, damaging the automaker’s business. Further, they worry his controversial policies at Twitter will negatively impact Tesla’s sales over the longer term.

Advertisement

Finally, yesterday Tesla announced that it was recalling 321,000 of its EVs because their taillights “intermittently illuminate.”

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Advertisement

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

More From InvestorPlace

  • Buy This $5 Stock BEFORE This Apple Project Goes Live
  • The Best $1 Investment You Can Make Today
  • Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”

The post Why Tesla (TSLA) Stock Is Having Its Worst Year Yet appeared first on InvestorPlace.

Advertisement

InvestorPlace| InvestorPlace

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *