In New York: Shares of Tesla Inc. fell 11.4% on Tuesday after a Reuters report that Tesla was planning to reduce production at its Shanghai plant in January raised concerns about a decrease in demand in the world's largest auto market.
The stock, which tumbled to its least in over two years and had its most horrendously awful day in eight months, was the greatest drag on the benchmark S&P 500 record and the tech-weighty Nasdaq file.
Since the beginning of October, it has lost more than half of its value due to investors' concerns that Twitter was consuming a significant amount of Chief Executive Elon Musk's time while he was worried about selling his stake in the electric car manufacturer.
The world's most valuable automaker is cutting production at its Shanghai plant as the country sees an increase in Covid-19-19 infections.
Great Hill Capital Chairman Thomas Hayes said, "There's no question there are demand fears," referring to a delivery forecast cut in the key market from Chinese rival Nio Inc.
In addition, Hayes stated that a "perfect storm" of high interest rates, tax loss selling, and share sales by funds that hold a significant amount of Tesla stock were threatening the stock of Tesla.
For income tax purposes, tax loss selling is when an investor sells an asset at a capital loss to reduce or eliminate other investments' capital gains.
In the meantime, a Reuters analysis revealed that demand for Tesla's new vehicles was being weighed down by the fact that used car prices were falling faster than those of other automakers.