Tesla shares fell 4% before the bell on Tuesday after missing Wall Street’s delivery targets.
James Leynse/Corbis via Getty Images
  • Tesla fell 4% before the opening bell on Tuesday after missing Wall Street’s delivery expectations.
  • It delivered just over 405,000 in the fourth quarter, missing analysts’ forecast of 430,000.
  • Shares of the electric car maker plunged 69% last year, wiping nearly $700 billion off its market value.

Tesla reported its fourth-quarter production and delivery totals on Monday – again disappointing investors a year after losing nearly $700 billion in market value.

The electric carmaker said it delivered 405,278 vehicles in the October-December period, bringing its 2022 total to a record 1.3 million.

But that was below Wall Street analysts’ forecast that Tesla would deliver 431,117 vehicles in the fourth quarter, according to Refinitiv data.

Shares fell 3.56% to $118.80 before the opening bell on Tuesday.

Tesla’s latest report also showed that it produced 34,423 more cars than it delivered, meaning supply outpaced demand for the third quarter in a row.

The company’s shares tumbled 69% last year as slowing demand, rising interest rates and Chief Executive Elon Musk’s chaotic takeover of Twitter spooked investors.

Its market value will fall from $1.06 trillion to $389 billion in 2022, according to Refinitiv data — meaning it lost a record $672 billion to investors.

“For most of 2022, Tesla’s stock price looks more like a well-regarded old car than a shiny, stylish machine,” said Russ Mold, investment director at AJ Bell.

“Given quarterly deliveries were lower than management’s expectations, there does not appear to be an immediate change in the company’s pace in 2023,” he added.

According to Reuters, Tesla is about to announce major changes to deliveries to promote Greater China executive Tom Zhu to lead North American factories, sales and services.

The move would make Zhu the electric carmaker’s second-highest-profile executive — at a time when Musk is under pressure from shareholders to step down as CEO.

Tesla shares have plunged 47% since Musk completed his acquisition of Twitter on Oct. 27, with analysts warning the social media giant is distracting him from his role as Tesla boss.

But Musk blamed rising interest rates for Tesla’s stock price plunge last year, which he said made cash more attractive than stocks, sparking a broader market sell-off.

read more: Tesla reportedly promoted its Chinese boss to head of U.S. factories and sales, making him No. 2 behind Elon Musk as $700 billion plunge spooks investors

Leave a Reply

Your email address will not be published. Required fields are marked *