Tesla (TSLA) stock has been in free fall the past week, closing down 72% YTD to around $113 per share last I checked. Why is TSLA stock dropping like a rock and is this a buying opportunity? Read: Tesla shares’ 2022 collapse hits 69% after latest sell-off on demand worries in China Source: Google

Why Tesla stock is falling

Demand concerns. Last week, Tesla started offering $7.5K discount to US customer to take delivery of Model 3 and Y before year end. Starting 1 Jan 2023, these models will likely qualify for $7.5K EV tax credit under the Inflation Reduction Act (IRA) so some customers might be delaying delivery to qualify for the credits. However, this does raise questions of demand since customers are willing to wait. Adding fuel to fire, rumours of Giga Shanghai production shutdown stoked demands fears. Recession risks. On macro side, fears of...