Tesla shares set for longest losing streak amid demand concerns

The electric vehicle maker's stock is down 69% this year, making it one of the worst performers on the S&P 500 index

Tesla chief executive Elon Musk. The car maker is offering US consumers a $7,500 discount on cars delivered before 2023. Reuters

Tesla shares are set to fall for an eighth straight day — the longest losing streak for the electric vehicle maker — amid concerns about ebbing demand and wider jitters about growth assets.

The stock dropped by 3.6 per cent at 4.40am in New York, heaping more misery after a 69 per cent loss this year that has put Tesla among the worst performers on the S&P 500 index in 2022.

The pre-market price indicates a further $12.3 billion loss of market capitalisation, with the company’s value already below that of Walmart, JP Morgan Chase and Nvidia after this year’s slump.

The shares slumped 11 per cent on Tuesday after Reuters reported that Tesla planned to reduce production at its Shanghai factory, rekindling fears about demand.

That added to concerns triggered by a separate report last week that the electric car maker was offering US consumers a $7,500 discount to take delivery of its two most popular models before the end of the year.

For Tesla, whose valuation is pinned on its future growth prospects, these worries reflect a significant risk.

Growth stocks have been hammered this year, with the Nasdaq 100 slumping 34 per cent as the US Federal Reserve raised interest rates aggressively to tame inflation.

Tesla was the second-biggest drag on the index after Amazon, with this year’s plunge marking a stark turnaround from the company’s 1,163 per cent rally over the previous two years.

Elon Musk’s disposals of Tesla stock and the distraction caused by his Twitter takeover also haven’t helped.

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