Tesla share’s fell by nearly 9% on Thursday, amid demand fears which has seen it offer discounts on Model 3 and Y vehicles with rumours also of staff cuts.
Elon Musk, chief executive and a major shareholder, again promised to stop selling his shares in the electric vehicle company having dumped around US$40bn worth of stock this year.
“I’m not selling any stock for, I don’t know, a minimum of 18-24 months,” he said in a Twitter space.
“I needed to sell some stock just to make sure there’s still some powder dry to account for a worst-case scenario,” he added, referencing his US$44bn takeover of Twitter.
Tesla has now fallen just shy of 70% in 2022, to $125.35.
Reports emerged on Thursday that the company was planning a hiring freeze and staff cuts, while also increasing discounts on its Model 3 and Y cars by US$7,500.
The electric vehicles firm has faced repeated blows recently, having to recall millions of vehicles over software issues, while being “abandoned” by its own and boss, according to investors.
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Wedbush analysts blamed the most recent spiral for Tesla shares on “higher inventory levels, recent price cuts, and overall production slowdowns in China”.
Now forecasting that the firm will miss Wall Street estimates for the quarter, Wedbush suggested the stock might have “bottomed”.
“We believe [it has bottomed] if Musk refocuses back on Tesla, truly stops selling stock, the board initiates a buyback, and 2023 guidance is set conservatively,” analysts at the US broker added.