Dip buyers are on track to snap shares of Tesla Inc. from an eighth straight day of losses, which would have been the longest ever losing streak for the electric vehicle maker.

The stock erased a drop of over 4% to trade higher by 3.8% at 6:42 a.m. in New York. It's poised to slightly trim a 69% loss this year which has put Tesla among the worst performers on the S&P 500 Index in 2022 amid concerns about ebbing demand and wider jitters about growth assets. The company's value has already slid below that of Walmart Inc., JPMorgan Chase & Co. and Nvidia Corp. after this year's slump.

The shares slumped 11% on Tuesday after Reuters reported that Tesla plans to reduce production at its Shanghai factory, rekindling fears about demand. That added to concerns sparked by a separate report last week that Tesla was offering U.S. consumers a $7,500 discount to take delivery of its two highest-volume models before year-end. For Tesla, whose valuation is pinned on its future growth prospects, these worries reflect a significant risk.

Growth stocks have been hammered this year, with the Nasdaq 100 slumping 34% as the Federal Reserve hiked interest rates aggressively to tame inflation. Tesla was the second-biggest drag on the index after Amazon.com Inc., with this year's plunge marking a stark turnaround from the company's 1,163% rally over the prior two years. Elon Musk's disposals of Tesla stock and the distraction caused by his Twitter takeover also haven't helped.

"It feels like confidence is gone, and Tesla's fairy tale suddenly ended," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Investors are more eager to see how the looming recession will hit Tesla demand, how competition from other electric-vehicle makers will impact Tesla's market share, and when Elon Musk will stop messing elsewhere while Tesla is shaking badly."

Farah Elbahrawy reports for Bloomberg News.

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