Why Tesla Is Down Nearly 30% This Year
The S&P 500 index dropped more than 20% in the first half of 2022, but Tesla (NASDAQ: TSLA) stock did even worse. Tesla shareholders saw their holdings down 36.3% in 2022 through June 30, according to data provided by S&P Global Market Intelligence. Even after the stock has staged a recovery in early July, shares remain down 28.8% year to date.
Investors shouldn't be overly surprised by the correction in Tesla stock. The company was valued at more than $1 trillion to start the year, giving it a price-to-earnings (P/E) ratio of more than 200 at the time. Investors were valuing it on its future potential, and once there was a hiccup in its growth trajectory, the stock was bound to drop.
Image source: Tesla.
Source Fool.com
