Tesla Stock Had a Difficult year
Tesla stock is experiencing a challenging year. December was particularly difficult.
According to Yahoo Finance data, the stock of the EV manufacturer has fallen 18% and more than half in 2022.
Wednesday’s premarket trading saw a 1% decline in the stock. However, despite this, the company’s ticker page continues to receive a lot of traffic from angry brand supporters. Analysts have identified several causes for the startling decline in Tesla’s once unstoppable stock price.
First, Tesla is more susceptible to operational mistakes because Elon Musk focuses on Twitter, which is the newest company in its portfolio.
The stock market slump has seen Bernard Arnault, founder of LVMH, replace Musk as the world’s richest man.
As shown in the graph below Tesla is still the dominant EV-first business. On Wednesday, the Federal Reserve will likely increase its benchmark interest rate by 0.5%. The market has already taken this into consideration. Rather, investors will be paying close attention to the Fed’s updated rate forecasts and what Chairman Jerome Powell says during his press conference following the rating announcement. Economists anticipate the Fed to…