Tesla extends declines amid broader market rally as the EV maker sees stock slashed in half in 2022

• Tesla stock slipped 5% Tuesday, extending Monday's losses even as the wider market rallied.
• Shares of the EV-maker have shed about 55% in 2022.

Tesla stock dropped more than 5% Tuesday, even as the broader market rallied on upbeat November inflation data.

Shares of the electric vehicle-maker hovered around $162, and have lost 55% year-to-date. Tesla's market cap is at $513.96 billion, and has been slashed in half in 2022.

According to Bloomberg data, Tesla is now trading at roughly 30 times projected earnings, it's lowest mark ever, as the company faces obstacles including waning demand in China as well as Elon Musk's entanglements with his recent acquisition of Twitter.

According to Wedbush's Dan Ives, Tesla now presents a prime target for activist investors because of its falling stock price. That could push the company into launching a stock buyback program, an idea Musk teased in Tesla's third-quarter earnings call.

"We also believe activism will start to increase across the broader tech sector as names such as Salesforce and Tesla being two examples will face growing pressure around margins, buybacks, and strategic moves," Ives said in a Monday note.

Ives recently, too, has warned that Musk's involvement at Twitter has turned into a "circus show" that's created controversy on almost a daily basis.

While he warned that investors may fear Musk will sell more Tesla stock to fund efforts at Twitter, the strategist still rates the company at "Outperform," and gives it a $250 price target.

"At the end of the day Musk is Tesla and Tesla is Musk," Ives said. "Any black eyes for Musk in the Street's view will be reflected in Tesla's stock."