December 9, 2022

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Tesla Stock On Track For Its Worst Year Ever As Elon Musk’s EV Giant Faces 4 Big Headwinds

2 min read

Tesla (TSLA) has been a monster stock over much of its history, especially from its stratospheric run from mid-2019 to late 2021. But in 2022, Tesla stock has been a big loser, on track to plunge nearly 52% as of Nov. 22.


That would easily surpass 2016’s 11% fall, the only other annual decline since Tesla stock came public in 2010. The sell-off has intensified, with the EV giant losing nearly half its value in just the past two months. On Monday, TSLA stock skidded 6.8% to a fresh two-year low, the S&P 500’s worst performer for the session.

Here are some major headwinds facing TSLA stock, from Elon Musk’s “Twitter circus” to Tesla demand concerns.

Tesla Stock Annual Performance

Year Tesla stock change
2010 56.6%
2011 6.7%
2012 18.9%
2013 343.8%
2014 47.9%
2015 7.9%
2016 -11.0%
2017 45.7%
2018 6.9%
2019 25.7%
2020 743.7%
2021 49.7%
2022 YTD -51.8%

China Covid Concerns

Beijing is essentially on lockdown amid the city’s first Covid deaths in months. Further restrictions were imposed in China on Tuesday as coronavirus cases are surging toward official all-time highs.

Keeping a lid on the more-infectious omicron variants will be extremely difficult, given that hundreds of millions of Chinese have not contracted Covid yet.

And that comes after China had eased restrictions slightly, raising hopes that the country would pull back its zero-Covid policy.

Renewed restrictions will further chill China’s ailing economy, reducing demand for EVs, including Tesla’s, and raising renewed risks of production interruptions.

Tesla Stock Vs. BYD Stock: Which EV Giant Is The Better Buy?

Tesla Demand

China’s Covid woes feed into Tesla demand concerns, partly due to a big Shanghai production increase. Tesla already cut prices in China, but there are local media reports of further cuts before year-end, but wait times are essentially at zero. Tesla may be betting on a big quarter for European sales, but that could draw down backlogs heading into…

2022-11-22 16:46:43

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