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Tesla’s selloff intensified on Tuesday, with the stock dropping another 8%. Elon Musk’s electric car company is days away from closing out its worst month, quarter and year on record and has moved past Meta to become the worst-performing stock in 2022 among the most valuable tech companies.

The latest drop comes after the Wall Street Journal reported that Tesla will continue a week-long production halt at its Shanghai facility, facing a fresh onslaught of Covid cases within its Chinese workforce.

Tesla performance, year-to-date

Reuters reported that when Tesla’s Shanghai plant reopens in January, it will do so for just 17 days, in a break from Tesla’s established practices. Shanghai has been battered by a fresh wave of Covid infections this month.

Tesla shares have fallen over 70% from their record high in November 2021. The stock is down over 68% in 2022, roughly double the decline in the Nasdaq. Among major car makers, Ford is down 45% and General Motors has fallen 43%. Since its IPO in 2010, Tesla has only fallen in one other year, an 11% drop in 2016.

For the month of December, Tesla has plunged 43%, by far its worst month ever, as it had never fallen more than 25% in a single month. And in the fourth quarter, the stock is down 58%, worse than its 38% drop in the second quarter of this year, which had been its worst period on record.

Last week, Tesla expanded discounts in North America for buyers of Model 3 and Model Y electric vehicles. Those discounts came after the automaker offered incentives in mainland China for December auto sales earlier this month.

Meanwhile, at Twitter, Musk has continued to flirt with controversy, welcoming back previously banned users, enabling the continued releases of internal messages related to the company’s past handling of Covid and election-related content, and flip-flopping on policy changes.

Companies have paused or suspended paid advertising on the platform, prompting outbursts from Musk.

Twitter is bleeding cash, and Musk is selling Tesla stock in big chunks. According to filings in mid-December, Musk sold about 22 million more shares of Tesla, which were worth around $3.6 billion, Earlier this year, Musk told his millions of followers on social media that he had “no further TSLA sales planned” after April 28.

Tesla investors want Musk to refocus his efforts on stabilizing the company that accounts for the vast majority of his wealth. Because of the extended selloff, Musk ceded his title as the world’s richest person earlier this month to LVMH chairman and CEO Bernard Arnault, according to Forbes.

“I think he really needs to focus on operations, focus on giving us great cars,” said Craig Irwin, an analyst at Roth Capital who has a hold rating on the stock and an $85 price target.

As of mid-day on Tuesday, Tesla was trading at around $112.

— CNBC’s Lora Kolodny contributed to this report

WATCH: Elon Musk needs to focus on operations at Tesla

Elon Musk needs to focus on operations at Tesla, says Roth Capital's Craig Irwin

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Tech stocks sink after Trump tariff rollout — Apple heads for worst drop in 5 years

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Tech stocks sink after Trump tariff rollout — Apple heads for worst drop in 5 years

CEO of Meta and Facebook Mark Zuckerberg, Lauren Sanchez, Amazon founder Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX CEO Elon Musk attend the inauguration ceremony before Donald Trump is sworn in as the 47th U.S. president in the U.S. Capitol Rotunda in Washington, Jan. 20, 2025.

Saul Loeb | Via Reuters

Technology stocks plummeted Thursday after President Donald Trump’s new tariff policies sparked widespread market panic.

Apple led the declines among the so-called “Magnificent Seven” group, dropping nearly 9%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steepest drop since 2020.

Other megacaps also felt the pressure. Meta Platforms and Amazon fell more than 7% each, while Nvidia and Tesla slumped more than 5%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell about 2%.

Semiconductor stocks also felt the pain, with Marvell Technology, Arm Holdings and Micron Technology falling more than 8% each. Broadcom and Lam Research dropped 6%, while Advanced Micro Devices declined more than 4% Software stocks ServiceNow and Fortinet fell more than 5% each.

Read more CNBC tech news

The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a “declaration of economic independence” for the U.S.

Companies and countries worldwide have already begun responding to the wide-sweeping policy, which included a 34% tariff on China stacked on a previous 20% tax, a 46% duty on Vietnam and a 20% levy on imports from the European Union.

China’s Ministry of Commerce urged the U.S. to “immediately cancel” the unilateral tariff measures and said it would take “resolute counter-measures.”

The tariffs come on the heels of a rough quarter for the tech-heavy Nasdaq and the worst period for the index since 2022. Stocks across the board have come under pressure over concerns of a weakening U.S. economy. The Nasdaq Composite dropped nearly 5% on Thursday, bringing its year-to-date loss to 13%.

Trump applauded some megacap technology companies for investing money into the U.S. during his speech, calling attention to Apple’s plan to spend $500 billion over the next four years.

Evercore ISI's Amit Daryanani on keeping Apple's outperform rating despite tariffs

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Plaid raises funding at $6 billion valuation, enabling some employees to cash out

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Plaid raises funding at  billion valuation, enabling some employees to cash out

Zach Perret, CEO and co-founder of Plaid, speaks during the Silicon Slopes Tech Summit in Salt Lake City, Utah, U.S., on Jan. 31, 2020.

George Frey | Bloomberg via Getty Images

Plaid on Thursday announced a new funding round that values the fintech startup at $6 billion, down from $13.4 billion in 2021. The new funding will give some employees a way to cash out.

The $575 million round was led by a batch of new investors including Franklin Templeton, Fidelity and BlackRock. Existing backers NEA and Ribbit Capital also participated, Plaid said.

Plaid CEO Zach Perret said the startup saw a “substantial” growth year with record revenue and positive operating margins, though he did not provide specifics. The downsized valuation is a reflection of market conditions, he said.

“The reality is our business is much stronger and revenue has grown quite substantially,” Perret told CNBC. “The profitability of business has gotten quite a lot better, and yet we are impacted by market multiples, as many companies are.”

Plaid is “not ready” for an IPO quite yet, but this round will be the last private fundraise until the company lists on public markets, he said.

“An IPO is absolutely on our path for the coming years. We haven’t assigned a specific timeline to it,” Perret said. “We still have a lot of internal work to do. We’re not ready, which is why we didn’t consider it right now.”

Rise of secondary rounds

Plaid’s new funding allows employees to cash out of restricted stock units that expire at the end of the year. The startup will also use a portion of the proceeds to enable an employee tender offer.

“That’s the motivation for the round,” Perret said. “We think it’s important to give our employees options to sell and the ability to have liquidity, especially given that Plaid has been private for so long.”

Plaid is the latest in a string of late-stage, private deals designed to enable employees to cash out in private markets. Ramp, DataBricks, OpenAI and Stripe have all announced secondary financings that were designed to let some employees get liquidity. Few of those companies seem eager to wade into public markets. Recent volatility around stocks and lackluster performance of recent IPOs, including CoreWeave’s last week, has kept some companies on the sidelines.

“Volatility is definitely going to be one of the key factors,” Perret said, adding that it was too early to assess IPO market conditions for Plaid.

The startup has been on a roller coaster in private markets since it was founded a decade ago. Plaid was set to be bought by Visa for $5 billion in 2020 in a deal that was eventually called off amid regulatory scrutiny. The following year, it raised money at a $13.4 billion valuation. That also marked the peak for growth and technology valuations before the Federal Reserve began raising interest rates.

Plaid provides the plumbing to connect consumer bank accounts to popular finance apps. Its APIs let consumers link their bank accounts to services like Venmo, Robinhood and Coinbase. Since then, it’s expanded into direct bill pay, cyber security and data analytics. It also partners with major banks.

Cybersecurity is one of Plaid’s largest growth areas, Perret said. He pointed to financial fraud growing at 20% to 25% per year as a result of the boom in artificial intelligence.

“We’ve been leaning in to try to build tools to combat deep fakes and a lot of AI-driven financial fraud,” he said. “Unfortunately, this is a large market opportunity. It’s something that we’d actually like to be smaller. But it’s been an area of growth.”

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Here’s where Apple makes its products — and how Trump’s tariffs could have an impact

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Here's where Apple makes its products — and how Trump's tariffs could have an impact

Apple’s iPhone 16 at an Apple Store on Regent Street in London on Sept. 20, 2024.

Rasid Necati Aslim | Anadolu | Getty Images

Apple has made moves to diversify its supply chain beyond China to places like India and Vietnam, but tariffs announced by the White House are set to hit those countries too.

U.S. President Donald Trump laid out “reciprocal tariff” rates on more than 180 countries on Wednesday.

China will face a 34% tariff, but with the existing 20% rate, that brings the true tariff rate on Beijing under this Trump term to 54%, CNBC reported. India faces a 26% tariff, while Vietnam’s rate is 46%.

Apple was not immediately available for comment when contacted by CNBC.

Here’s a breakdown on Apple’s supply chain footprint that could be affected by tariffs.

China

The majority of Apple’s iPhones are still assembled in China by partner Foxconn.

China accounts for around 80% of Apple’s production capacity, according to estimates from Evercore ISI in a note last month.

Around 90% of iPhones are assembled in China, Evercore ISI said.

While the number of manufacturing sites in China dropped between Apple’s 2017 and 2020 fiscal year, it has since rebounded, Bernstein said in a note last month. Chinese suppliers account for around 40% of Apple’s total, Bernstein said.

Evercore ISI estimates that 55% of Apple’s Mac products and 80% of iPads are assembled in China.

India

Apple is targeting around 25% of all iPhones globally to be made in India, a government minister said in 2023.

India could reach about 15%-20% of overall iPhone production by the end of 2025, Bernstein analysts estimate. Evercore ISI said around 10% to 15% of iPhones are currently assembled in India.

Vietnam

Vietnam has emerged in the past few years as a popular manufacturing hub for consumer electronics. Apple has increased its production in Vietnam.

Around 20% of iPad production and 90% of Apple’s wearable product assembly like the Apple Watch takes place in Vietnam, according to Evercore ISI.

Other key countries

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