Tesla (NASDAQ: TSLA) is one of the worst-performing stocks of 2022. After an unrelenting rise over the past decade to a trillion-dollar market cap, the stock is down 55% this year and now sports a market cap of less than $500 billion. The current bear market, antics from CEO Elon Musk, and worries about a global recession have likely contributed to this decline.  

If you're reading this, your instinct might be to "buy the dip" on Tesla shares. But that instinct could be a mistake given the stock's current valuation. Here's why investors should avoid buying Tesla in 2023. 

Nobody can deny that Tesla has put up some fantastic growth numbers in the past few years. In 2020, the company went from generating consistent net losses to solid annual profits. Over the last 12 months, the business has generated a net income of $11.2 billion. This happened because the automotive manufacturer rapidly scaled up its production and deliveries, leading to operating leverage over its fixed cost base. For reference, in the third quarter of this year, Tesla delivered 344,000 cars to customers, which is up 250% from the 97,000 deliveries it made in Q3 2019.

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Source Fool.com