Tesla Inc. shares are poised to end the first week of 2023 with losses of about 10%, deepening the stock’s dive in recent months and following news the electric-car maker further cut prices in China.
in December sold its fewest vehicles in China in about five months, down about 44% from November and 21% fewer vehicles than a year earlier. The EV maker also announced more price cuts in China.
“This comes weeks after the auto maker began cutting prices in the area by as much as 9% to offset initial signs of softening consumer demand,” Emmanuel Rosner at Deutsche Bank said in a note Friday.
Tesla stock was on track for its fourth losing week of the past five and down more than 3% on Friday alone.
A close around these levels would be Tesla’s lowest since Aug. 12, 2020, when it closed at $103.65. It traded as low as $101.81, its lowest intraday also from the August 2020 date.
The stock was down 74% from its record closing high of $409.97 on Nov. 4, 2021. It is the most active stock in the S&P 500 index
and worst performer in the Nasdaq Composite
Tesla stock is down 69% in the past 12 months, compared with losses of around 18% for the S&P.
Earlier this week, Reuters reported that Tom Zhu, Tesla’s top executive in China, took the reins of the U.S. factories as well as sales in North America and Europe.
The news organization cited an internal posting of reporting lines it had reviewed. Tesla has not confirmed it.
Also earlier in the week, Tesla reported disappointing fourth-quarter deliveries, its proxy for sales.
Tesla Chief Executive Elon Musk has sold billions in its Tesla stock holdings to finance his buying of Twitter Inc. last year.
Musk’s involvement in the social-media company has been under criticism from Tesla investors and analysts, with some likening his actions as treating the company as “an ATM” and a continuing “nightmare.”
Musk has presided over months of turmoil at the social-media company, which he bought for $44 billion in October.
In mid-December, after some longtime Tesla investors expressed concern over the Twitter entanglement, Musk said that he would “make sure” that his Twitter ownership will be beneficial for the EV maker’s shareholders in the long run.