On the first day of trading in 2023, shares of the electric vehicle company plummeted sharply after it announced poor fourth-quarter shipment numbers, reigniting demand worries and weighing on a Tesla stock that has just seen its worst-ever yearly performance.
On Tuesday, Tesla stock finished at $108.10, down 12% from the day before. With shares finishing at their lowest point since August 13, 2020, the drop was its largest in more than two years. After reaching a high in November 2021, Tesla’s shares dropped by 65% in 2018. The stock has now lost more than $950 billion in value.
Musk said last month that higher interest rates were dampening demand for automobiles. Tesla gave incentives to many purchasers who agreed to take delivery of cars before the end of the year in a sales promotion.
Last Year’s Results Fell Short, so What Will Wall Street Target in 2023?
Tesla stock year-end projections have been lowered. Tesla’s full-year deliveries should climb to 1.84 million automobiles, or around 40% yearly growth, compared to the typical 50% yearly growth that Tesla has been aiming for. Despite analysts’ predictions that deliveries would accelerate in the second quarter, Goldman Sachs decreased its 2023 Tesla delivery estimate to 1.8 million vehicles.
Changes in how Tesla manufactures and delivers automobiles to consumers crimped delivery totals on Monday. This resulted in more cars being in transit toward their ultimate destination at the end of the quarter.
Last year was a difficult one for the car manufacturer. Because of COVID-19 problems, it shut down its Shanghai car manufacturing multiple times. Moreover, it ran into difficulties building new factories in Germany and Texas.
Musk’s engagement with Twitter Inc. irritated some investors and prospective Tesla customers. He purchased the social-media firm in a deal worth $44 billion.
When Tesla releases fourth-quarter results on January 25, it will likely report another record full-year income and profit.
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