According to one prominent analyst, the American automaker still has more growth ahead of it than behind it, despite the recent news about lagging demand for its electric vehicles.
Musk spoke at the ground-breaking ceremony for a factory in China.
After falling as much as 7.7% to $101.81 during early trading, the stock recovered to hit its lowest split-adjusted price in over a year, with shares down 40% over the last month and 70% over the last year
The latest dip comes after the company lowered prices for its Model 3 and Model Y cars in China, which is the company's largest market.
Despite the overall sour response to the price cuts in China, it is what the company needed to do to spur demand, according to an analyst.
Concerns about demand, which the company is doing the right strategic moves to address, has been the main drag on the stock recently.
After the latest employment data revealed a weakened labor market, a sign that the Federal Reserve may soon stand down on its most aggressive interest rate increases, the stock nosedived. Since April, when he first agreed to buy the social media company, Musk has sold more than 20 billion of his shares in the electric car maker. According to Forbes, Musk is now the world's wealthiest man, but his fortune is down by more than half. Musk said on social media that he would stop selling his shares in the company and step down as the CEO of the micro-messaging service.
The appointment of a new CEO by the end of the month and a promise by Musk to stop selling shares during the firm's quarterly earnings call could help stop the selloffs.
The market was open for 12 of the last 24 days. It has been one of the most volatile large stocks in recent months and was the second worst performing company on the S&P 500.
Losses top $895 billion as rival carmaker warns of challenging weeks ahead.
The tech sector has hit multiyear lows.
There is a new'major worry' that has arisen.
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