Tesla shares fall more than 10% after deliveries report

A day after the electric vehicle maker revealed its fourth-quarter 2022 vehicle production and delivery figures, Tesla shares fell 14% on Tuesday.

The closest representation of Tesla’s stated sales is through deliveries. The company reported 1.31 million deliveries overall for the year and a total of 405,278 deliveries in the quarter. Despite being a record for the Elon Musk-led manufacturer and a 40% increase in deliveries over the previous year, these numbers missed analysts’ predictions.

As of December 31, 2022, Wall Street expected Tesla to announce about 427,000 deliveries for the final quarter of the year, according to a consensus of analyst forecasts compiled by FactSet. The FactSet consensus includes estimates that were updated in December and ranged from 409,000 to 433,000.

These most current projections were in accordance with a company-compiled consensus provided by Martin Viecha, Tesla’s vice president of investor relations. Tesla shares experienced a year-long sell-off in 2022, prompting CEO Musk to warn staff members not to be “too worried about the stock market madness” in late December.

Musk has attributed a portion of Tesla’s stock price decline to rising interest rates. However, many claim that Twitter’s $44 billion acquisition was more to blame for the decline. The decline in the corporation’s share price, according to Morgan Stanley analysts, is a “window of opportunity to buy.”

“There are challenges that all automotive businesses must overcome in the coming year,” they wrote in a report Tuesday. These hurdles include a worsening macroeconomic environment, record unaffordability, and growing competition. However, given this context, we believe that Tesla has the ability to extend its lead over the competition in the EV race by leveraging its cost and scale advantages.

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Categories: Technology
Source: vtt.edu.vn

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