New York
CNN
—
Tesla shares plunged more than 12% in trading on Tuesday. Global sales have fallen short of expectations, and the company’s share price has continued to fall sharply since last year.
Tesla reported a record 1.3 million unit sales for 2022, up 40% from its 2021 total, but well below the 50% growth target the company set at the beginning of the year. The company had already warned it would not meet its aggressive annual target, but his sales of 405,278 in the fourth quarter were far lower than had been feared. That’s just 31% year-over-year growth, well below the median estimate of 431,000 by analysts surveyed by Refinitiv.
The 12.2% drop in Tesla (TSLA) shares in Tuesday’s trading was the worst day for Tesla (TSLA) shares in more than two years. The company’s stock price fell by 65% for the year to 2022, slashing Musk’s net worth and knocking him out of his position as the world’s richest person. It was the worst year yet for Tesla (TSLA) stock, which rose 743% in 2020 and another 50% in 2021.
Sales fell despite the company offering two price cuts in December for US buyers who completed their purchases by the end of the year. The fact that global sales of his 439,000 cars built during this period have fallen sharply is another indication that demand for Tesla cars is weakening in the face of many headwinds. raised concern. These include rising interest rates, intensifying competition for his EVs from established automakers and his upstart EV makers, and Tesla’s CEO since the controversial Twitter acquisition earlier in the quarter. backlash against Elon Musk.
Wedbush Securities technical analyst Dan Ives said: “Tesla’s Cinderella ride is over.”
– David Goldman of CNN contributed to this report
