Tesla sputters as investors weigh China demand, recalls and Twitter distraction
Spencer Platt

Tesla (NASDAQ:TSLA) carved out a new 52-week low early on Tuesday before moving back into positive territory later in the session.
There are conflicting reports out of China on which direction demand trends are moving. Tesla's China business has said that it does not plan for any more price cuts, despite published reports. However, the electric vehicle maker has advertised on a local TV shopping channel, extended insurance subsidies of as much as 8,000 yuan ($1.1K) for new buyers and reinstated a user referral program in an effort to stoke demand.
"The company is facing great competition from local competitors as well as lower consumer confidence. The promotions, including insurance subsidies, may also extend into next year," noted 86Research auto analyst Wang Hanyang.
Also in the Tesla (TSLA) mix, the company has issued back-to-back recalls. All Tesla stores and service centers were notified about two separate recalls issued, including one affecting nearly 30K Tesla Model X cars in model years 2021-2023 that have the potential for their front passenger airbag system to deploy incorrectly during certain low-speed collisions. 
Shares of Tesla (TSLA) showed a 0.63% gain at 12:35 p.m. on Tuesday after recording a new 52-week low of $166.19 earlier in the session. TSLA is down 58% from its high last January.
Some analysts think the Elon Musk-Twitter distraction is a minor factor in the downward swing in sentiment on the EV stock. "While Tesla is a highly vertically integrated company, it remains reliant on a host of commercial partnerships (both upstream and downstream) that may not want to be associated with certain levels of controversy," observed Morgan Stanley analyst Adam Jonas. Read why the firm thinks Tesla could be a value stock by the time the Twitter turmoil fades.