NEW DELHI (CoinChapter.com) — Elon Musk’s Tesla (NASDAQ: TSLA) ended 2022 as one of the worst-performing tech stocks. TSLA price dropped 70% from Jan 3’s high of $400 as Musk’s acquisition of Twitter and rash decisions returned to haunt Tesla share prices.
Tesla had its worst year on record in 2022, overtaking Meta regarding YTD losses.
The latest slump came after Tesla suspended car production at its Shanghai plant on Dec 24. Tesla’s decision extended the eight-day production halt at its largest worldwide plant by car output. The report rekindled fears of demand risk, leading to TSLA price slumping more than 11% on Dec 27.
For Michael Burry of “The Big Short” fame, the slump might not have come as a surprise. The investor had predicted in Dec 2020 that Tesla shares were in a bubble.
Furthermore, news of the reduced output in Shanghai comes on the heels of a report that Tesla was offering customers a $7,500 discount to take delivery of its two highest-volume models before year-end. The news intensified concerns about declining demand for Tesla.
Also Read: Investor Michael Burry Confirms US will Slip into Recession in 2023
Craig Irwin, an analyst at Roth Capital Partners, told TIME magazine that most of Tesla’s share’s weakness was “due to indicators showing flagging demand globally.”
Additionally, concerns about Tesla’s over-reliance on China for profits might have weighed on TSLA prices.
Given Tesla’s downtrend, investors are cautious about buying TSLA shares in 2023. However, although Tesla’s breakneck drop unwound in 2022, analysts’ stance on Tesla continues to be bullish. As a result, several investors ask, “should I buy Tesla stock now?“
Furthermore, the growing market of electric vehicles globally is bound to act as a bullish signal for Tesla stocks. Per Bloomberg data, market experts speculate Tesla’s revenue to grow by 37% in 2023.
If you look to next year, even though there’s a lot of uncertainty around the earnings there or even now to 2025, Tesla is incredibly compelling on just a P/E basis, in particular in light of the growth that they have.
Canaccord Genuity analyst George Gianarikas told CNBC
Canaccord Genuity analyst George Gianarikas noted that Tesla’s innovation curve would likely help Tesla recover in the long run. Traders looking to enter the market might start buying the drip, helping TSLA price to bottom out.
Furthermore, Tesla is not the only one to perform badly in 2022. Five tech companies, including Amazon, Apple, Alphabet, Tesla, and Meta, collectively lost $3.7 trillion in market cap.
An uptrend in Tesla stock could indicate a recovery in TSLA price, attracting more buyers to the market.
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