Tesla (TSLA) and meme cryptocurrency Shiba Inu (SHIB) stocks have been underperforming since the start of 2022 and have both lost about 70% year-to-date.
Notably, such cryptocurrencies as Bitcoin (BTC) and Dogecoin (DOGE) have outperformed the stock of the leading e-car maker.
Tesla saw its stocks crumble nearly 9% on Thursday following the company’s announcement about reducing its price tags for both the Model 3 and Model Y vehicles by $7,500 for those expecting delivery this month across the U.S. This reignited fears of diminishing demand.
Investors recently expressed concerns that Tesla CEO Elon Musk may put more of his shares in the company up for sale to finance his Twitter investments, with him offloading around $3.5 billion worth of shares last week.In an attempt to bolster shareholders’ confidence in the electric car maker, Musk said that he would not be issuing any stock sales over the upcoming two-year period during a Twitter Spaces audio chat. He added that he believes the economy would experience a "serious recession" by 2023
Yet, TSLA is only up a mere 1.2% in after-hours trading, paring initial gains as uncertainty continues to linger over Tesla’s futures. Investors might not be reassured by Musk’s recent comments since he sold TSLA shares on multiple occasions after promising not to do so back in April.
Shareholders are concerned the billionaire’s Twitter antics are negatively affecting Tesla’s overall brand value and reputation.