Tesla's Stock Experiences Record-Breaking Losses in Month, Quarter, and Year

Tesla's stock continued to fall on Tuesday, dropping another 8%. This means that the company is now on track to have its worst month, quarter, and year on record. Tesla has also moved past Meta to become the worst-performing stock in 2022 among the most valuable tech companies.

Tesla's stock price has dropped again, this time after reports that the company will be halting production at its Shanghai facility for another week due to a new outbreak of Covid cases among its Chinese workforce.

According to Reuters, Tesla's Shanghai plant will reopen for just 17 days in January, a departure from the company's usual practices. The city has been hit hard by a new wave of Covid-19 infections this month.

Tesla shares have fallen sharply from their record high in November 2021. The stock is down over 68% in 2022, roughly double the decline in the Nasdaq. Among major car makers, Ford is down 45% and General Motors has fallen 43%. Since its IPO in 2010, Tesla has only fallen in one other year, an 11% drop in 2016.

Tesla's stock has taken a nosedive in December, plunging 43%. This is by far the worst month ever for the company, as its stock has never fallen more than 25% in a single month. In the fourth quarter, things are even worse, with the stock down 58%. This is worse than its 38% drop in the second quarter of this year, which was previously its worst period on record.

Last week, Tesla expanded discounts on its Model 3 and Model Y electric vehicles in North America. This followed the automaker's offer of incentives in mainland China for December auto sales earlier this month.

Twitter has been a hotbed of controversy lately, thanks in large part to Elon Musk. Musk has been welcoming back previously banned users, enabling the continued releases of internal messages related to the company's past handling of Covid and election-related content, and flip-flopping on policy changes. This has caused quite a stir among Twitter users, and it remains to be seen how the situation will play out.

Companies have paused or suspended paid advertising on the platform, prompting outbursts from Musk. He has accused the companies of "censorship" and called for a boycott of the platform.

Twitter is losing money, and Musk is selling Tesla stock in large amounts. According to filings in mid-December, Musk sold about 22 million more shares of Tesla, which were worth around $3.6 billion. Earlier this year, Musk told his followers on social media that he had no further TSLA sales planned after April 28.

Investors in Tesla want CEO Elon Musk to refocus his efforts on stabilizing the company, which accounts for the vast majority of his wealth. The extended selloff in Tesla stock has caused Musk to lose his title as the world's richest person, according to Forbes.

Craig Irwin, an analyst at Roth Capital, believes that Tesla needs to focus on improving its operations and producing high-quality cars. Irwin has a hold rating on Tesla's stock and a price target of $85.

Tesla's stock was trading at around $112 as of mid-day on Tuesday.

Elon Musk needs to focus on the operational side of Tesla if the company is going to succeed. Musk is a visionary and has been instrumental in Tesla's success so far, but now it's time to focus on making sure the company can produce cars at a high quality and meet customer demand. This is where Musk's expertise is really needed.