'It looks like Musk's employees have no hope of getting a year-end bonus.'
In addition to Apple Inc, Tesla Inc was also the main factor in the decline of the benchmark S&P 500 and Nasdaq yesterday when its shares recorded a decline for 8 consecutive sessions.
So far yesterday Tesla shares are down 11.4% at $109.10, down 69% so far this year to hit their lowest level in more than 2 years.
The stock's decline came after investors took notice of the company's plans to cut production in January as factories in Shanghai continued to struggle and global demand worries erupted.
It is understood that Tesla's production plant in China has been forced to reduce output due to the surge in Covid infection cases after the easing of policies by the government.
Commented Thomas Hayes, Chairman of Great Hill Capital, concerns about demand are not something to question with the average player in the electric vehicle (EV) industry seen to reduce production.
Hayes also underlined that factors such as high interest rates, tax loss sales and the sale of shares by owner Elon Musk further lowered its value.
There is no denying that Musk's actions of selling part of his stake in Tesla to buy Twitter is one of the main causes of the company's poor performance.
Added to this is Musk's one-sided focus on Twitter, angering investors as the company grapples with its own internal problems.
