What's Dragging Tesla Stock Lower For Third Straight Session On Wednesday

The Tesla Inc. TSLA sell-off continues unabated, with premarket movement signaling a third-straight session of loss for the stock.

What Happened: Perception toward the company and the brand has taken a beating in recent times amid CEO Elon Musk’s preoccupation with Twitter. The billionaire’s bold statements outlining his political leanings have alienated people, a survey has found.

More importantly, Tesla backers and investors worry that Musk is not available for the company even as it navigates through challenging times. They fear that the bulk of his time is being eaten up by Twitter.

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On Tuesday, Tesla bull and fund manager Gary Black flagged a potential fourth-quarter disappointment from the EV maker, especially as Musk has been bringing up the macroeconomic situation in his recent discussions about the company. The recent price cuts in the U.S. and China and production disruptions have all served to temper expectations for the quarter.

With Tesla declining over 4% on Tuesday despite the broader market upside, Black said there have been rumors that Musk may be selling some of his Tesla stake before the fourth-quarter trading window closes on Friday until the end of January.

Price Action: In premarket trading, Tesla shares were down 1.03%, at $158.69, according to Benzinga Pro data. This would mark their lowest level since Nov. 18, 2020.