Tesla stakes tumbled over 12% after the deliveries report

Tesla stakes tumbled over 12% after the deliveries report

On Tuesday, shares of Tesla closed down 12%, a day after the electric automaker stated fourth-quarter vehicle production and delivery amount for 2022 that decreased shy of analysts’ anticipations and the firm’s goals.

Deliveries are the closest approximation of sales is disclosing by Tesla. The company stated 405,278 total deliveries for the quarter and 1.31 million total amount for the year. The year’s numbers represented a record for the Elon Musk-led automaker and a surge of 40% in deliveries like 2021.

But the consensus of analysts’ estimates stated that combined with FactSet, as of December 31, 2022, Wall Street anticipated Tesla to report around 427,000 deliveries for the year’s final quarter. Estimates updated in December, which included in the FactSet consensus, ranged from 409,000 to 433,000.

Shares of Tesla are suffering a yearlong sell-off in 2022, encouraging CEO Musk to inform the employees in December not to be “too bothered by stock market craziness.”

Musk has partially blamed Tesla’s declining share price on rising interest rates. But critics point to his $44 billion Twitter takeover as one more big culprit. Musk has traded tens of billions of dollars of his Tesla shares in the previous year to finance the leveraged buyout.

Some Wall Street spokespersons think that Tesla’s deliveries miss, which followed fierce discounting by Tesla in China and the US, spells trouble for the electric vehicle maker, but others witness a buying opportunity.

Analysts at Goldman Sachs stated that they consider the delivery report an “incremental negative” and view Tesla as “well positioned for long-term growth.” In a Monday note, Goldman reiterated its buy rating on the stock and said that making vehicles more convenient in a challenging macroeconomic environment will be a “key driver of growth.”

“We believe critical debates from here will be on whether vehicle deliveries can reaccelerate margins and Tesla’s brand,” the analysts said.