Tesla Inc. TSLA stock has lost a little over 50% year-to-date and it is now on a four-day losing streak. CEO Elon Musk, on Thursday, listed probable reasons for the predicament, blaming it mostly on extraneous factors.
What Happened: A Tesla influencer shared screenshots of Tesla Vs. Amazon Inc. AMZN stock chart for the past year, showing both materially underperforming.
Tagging the influencer, Musk chimed in with thoughts on probable reasons.
Why It's Important: Musk's reasoning could not be far-fetched. The Russia-Ukraine war has left the energy situation in Europe grim. As winter approaches, Europe, which relies primarily on natural gas imports from Russia, is facing a threat to its energy security.
Musk has previously flagged warnings regarding the overheated property market in China that could come crashing down and impact economic growth in a country on which Tesla is heavily reliant for production and sales. Closer home, the Federal Reserve’s successive and aggressive rate hikes have put brakes on economic growth, with economists brisk with their recession calls for the new year.
Although Musk did not mention any company-specific issues for the stock's underperformance, Tesla investors and backers have been highly critical of his Twitter acquisition. They see the buy as a noise to the electric vehicle maker.
Price Action: Tesla shares ended Thursday's session down 0.34% at $173.44, according to Benzinga Pro data.
Photo: Courtesy of Wikimedia Commons
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