Tesla stock set to see biggest yearly decline

Yahoo Finance Live examines Tesla shares ahead of 2022's conclusion and discusses CEO Elon Musk's balancing of newfound Twitter responsibilities.

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PRAS SUBRAMANIAN: You know, another stock that I'm watching here is tech oriented is Tesla. Shares a little flat today, but poised to finish the year with its biggest ever decline, down a whopping 65% for 2022. That's a big ouch right there. Hard to believe the stock was around 360 back in March, but here we are.

And as we know, CEO Elon Musk made his Twitter overture back in April. The stock has slid ever since. Elon's numerous stock sales, as well as demand concerns, both here and in China, weighed heavily on the stock. However, we will have Q4 delivery numbers next week, and the IRA tax credit back in effect next year. But my big question for next year is will Elon get out of his own way? I think that's the big issue, I think, for Tesla and investors next year.

SEANA SMITH: Yeah, and I don't know. I don't know if anyone can predict it. I think you might be optimistic that he will prioritize Tesla and let somebody else run Twitter. We're going to be talking to Dan Ives in the next hour. And he was out with 10 predictions or actions that he thinks Elon Musk needs to do in the new year. And that, of course, topped the list.

But I also think investors and analysts would like to see Tesla get more focused just in terms of the fundamentals. We talked to Colin Rusch earlier this week from Oppenheimer. He was saying he is bullish on the stock because of its position from a technological standpoint versus where it has been trading and this overhang from Twitter, this distraction. So I think Tesla clearly has room to turn it around. How quickly they do it, though, is going to be the big question.

JARED BLIKRE: I think the only way Elon Musk is out of Twitter is if he's forced out because of financial reasons. I think that's the only comeuppance he's going to listen to.

SEANA SMITH: We will see, and of course, we'll see whether or not he's forced to sell more Tesla stock to fund his ongoing efforts over at Twitter.