Tesla shares see worst day in two years on weaker than expected sales


New York
CNN

Tesla shares plunged more than 12% in trading on Tuesday, as weaker than expected global sales caused the massive drop in the company’s share price that began last year to continue.

Tesla announced record sales of 1.3 million vehicles in 2022, up 40% from the 2021 total, but well below the 50% growth target the company had set for the beginning of the year. While he had already warned that he miss this ambitious goal for the whole year, its sales of 405,278 cars in the fourth quarter were much weaker than expected. It represented growth of just 31% from the previous year and was well below the median estimate of 431,000 according to analysts polled by Refinitiv.

Tesla’s 12.2% drop

(TSLA)
stocks in Tuesday’s trading were the worst day for Tesla

(TSLA)
actions in more than two years. The company’s shares ended 2022 down 65% for the year, significantly reducing Musk’s net worth and hit him out of his position as the richest person in the world. It was the worst year ever for Tesla

(TSLA)
stocks, which gained 743% in 2020 and another 50% in 2021.

The drop in sales came despite the company’s two price cuts in December for US buyers who finalized their purchase at the end of the year. The fact that global sales were well below the 439,000 cars built during the period raised further concerns that demand for Tesla cars was weakening in the face of numerous headwinds. These include higher interest rates, increased competition from electric vehicles of established automakers with upstart electric vehicle manufacturers, and backlash against Tesla CEO Elon Musk since his controversial takeover of Twitter at the start of the quarter.

“Overall demand is starting to crack a bit for Tesla and the company will have to adjust and cut prices especially in China, which remains key to the growth story,” said Dan Ives, technology analyst for Wedbush Securities. . “Cinderella’s ride is over for Tesla.”

– CNN’s David Goldman contributed to this report

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