Dec 27 Reuters Tesla Inc shares fell 11.4 on Tuesday after a Reuters report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world39;s biggest car market.

The stock, which fell to its lowest in more than two years and had its worst day in eight months, was the biggest drag on the benchmark SP 500 index and the techheavy Nasdaq index.

It has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk39;s time while fretting about his stake sale in the electriccar maker.

The world39;s most valuable automaker39;s production cuts at the Shanghai plant come amid a rising number of COVID19 infections in the country.

There39;s no question there are demand fears, Great Hill Capital Chairman Thomas Hayes said, citing a delivery forecast cut from Chinese rival Nio Inc, in the key market.

Hayes also added that Tesla39;s stock was facing a perfect storm of highinterest rates, tax loss selling and share sales by some funds that hold a significant amount of Tesla stock.

Tax loss selling is when an investor sells an asset at a capital loss to lower or eliminate the capital gain realized by other investments, for income tax purposes.

Meanwhile, a Reuters analysis showed that prices of used Tesla cars were falling faster than those of other carmakers, weighing on demand for the company39;s new vehicles rolling off the…