What happened
Shares of electric car maker Tesla (TSLA +2.96%) took a hit on Wednesday. As of 11:35 a.m. ET, the stock is down about 3%.
The stock's slide was likely primarily due to a rough day for the overall market. After broader-market indices kicked off the day on a positive note, with the S&P 500 and the Nasdaq Composite both in the green, the indices slid into the red by midmorning.
Image source: Tesla.
So what
In a tough start to 2022, many growth tech stocks like Tesla have been getting hammered, as pessimism seems to be the winning emotion in the markets so far this year. The stock is down 5.3% year to date -- and that includes when the stock popped sharply earlier this year after the company announced blowout fourth-quarter vehicle deliveries.
The stock's decline on Wednesday is likely simply a continuation of further pressure on growth tech stocks, as investors seem to be taking profits on some of the stocks that outperformed the market meaningfully over the last few years.
Now what
Looking ahead, investors are likely eyeing Tesla's upcoming fourth-quarter earnings report. Though the company has already reported fourth-quarter deliveries, the report had limited information. When Tesla reports its fourth-quarter results on Jan. 26, investors will get more information.
One key item many investors will likely be watching when Tesla reports its fourth-quarter results is management's guidance for 2022 vehicle deliveries. Investors should hope that the company guides for another year of 50%-plus growth in vehicle sales in order to continue justifying the stock's pricey valuation.
