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Tesla crashes 72%, wipes out $720 billion mcap in worst year

Tesla shares rose nearly 1% in the US stock market early on Wednesday, promising to end a seven-day losing streak that drove the shares down 30%.
Had the stock fallen on Wednesday too, it would have been the longest ever losing streak for the carmaker. However, a nearly 72% slide in Tesla shares this year has erased almost $720 billion from its stock market capitalisation. The latest jump will only slightly trim those steep losses.
The drubbing has been fuelled by rising interest rates that battered growth stocks, worries that demand will erode if there’s a recession, and concerns that Elon Musk’s acquisition of Twitter will divert his attention and increase his sales of Tesla stock to keep the social media firm afloat.

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The drop has made Tesla among the worst performers in the S&P 500 index this year. The company’s value is already below that of Walmart, JPMorgan Chase and Nvidia after this year’s slump.
The shares had slumped11% on Tuesday after Reuters reported that Tesla plans to reduce production at its Shanghai factory, rekindling fears about demand. That added to concerns sparked by a separate report last week that Tesla was offering US consumers a $7,500-discount to take delivery of two models before yearend. 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% as the Federal Reserve hiked 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% rally over the prior two years. Musk’s disposals of Tesla stock and the distraction caused by his Twitter takeover also haven’t helped.
“It feels like confidence is gone, and Tesla’s fairy tale suddenly ended,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Investors are more eager to see when Elon Musk will stop messing elsewhere while Tesla is shaking badly. ”

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