Tesla shares tumble after company misses delivery target

Jan 2, 2023, 10:25 PM | Updated: Jan 3, 2023, 1:44 pm
FILE - The Tesla logo is seen at the company's store in Denver's Cherry Creek Mall on Feb. 9, 2019....

FILE - The Tesla logo is seen at the company's store in Denver's Cherry Creek Mall on Feb. 9, 2019. Shares of Tesla tumbled Tuesday, Jan. 3, 2023, on the first full day of trading since the company announced 2022 delivery numbers that fell short of targets. (AP Photo/David Zalubowski, File)

(AP Photo/David Zalubowski, File)

DETROIT (AP) — Shares of Tesla tumbled more than 12% Tuesday on the first full day of trading since the company announced 2022 delivery numbers that fell short of targets.

The electric vehicle and solar panel maker’s stock closed at $108.10, and it’s down just under 70% since the start of last year. The stock hit its lowest point since August of 2020, and Tesla’s market value, according to FactSet, slid to $341 billion, down from over $1 trillion as recently as April.

Tesla said Monday that it sold a record 1.3 million vehicles last year, but the number fell short of CEO Elon Musk’s pledge to grow deliveries by 50% nearly every year.

The 2022 figure topped the prior record of 936,000 vehicles delivered in 2021, but it was shy of the 1.4 million needed to reach the company’s 50% growth target. Sales grew 40% year over year, while production climbed 47% to 1.37 million.

The shortfall came despite a major year-end sales push that included rare $7,500 discounts in the U.S. on the Models Y and 3, the company’s top-selling models. Analysts said that Tesla also offered discounts in China, leading some to question whether demand for the company’s vehicles is softening.

Tesla Inc., based in Austin, Texas, also had to deal with rising cases of novel coronavirus in China, which hampered production at its Shanghai factory.

Cowen and Co. analyst Jeffrey Osborne expected investors to focus on missing the delivery target, but he only saw modest negative reaction “following acute weakness the past few weeks on production cuts in China and discounting.”

Investors will need to see stability in profit margins despite lower prices, and demand and order trends showing resumed growth this year for the stock to get further support, Osborne wrote in a note to investors early Tuesday.

In an apparent effort to shore up the stock price, Tesla announced Monday that it would hold an investor day event on March 1 at its factory near Austin. Investors will be able to see Tesla’s production line, discuss expansion plans and see the platform that will go beneath Tesla’s next generation of vehicles.

The Tesla stock decline also has cost Musk billions, bumping him out of the top spot for the world’s wealthiest person, according to Forbes.

Also playing into the stock drop is Musk’s $44 billion purchase of Twitter and his sale of Tesla stock to help fund the purchase. Musk sold another $2.58 billion worth of Tesla stock last month and has sold nearly $23 billion worth of his car company’s shares since April, when he started building a position in Twitter.

Many investors are worried that Musk has become too distracted as CEO of Twitter and isn’t paying enough attention to the electric vehicle company. Musk has said he would step down as Twitter CEO when he finds someone to run the social media platform.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Bryan Kohberger, who is accused of killing four University of Idaho students in Nov. 2022, a...
Associated Press

News groups ask Idaho Supreme Court to reject University slayer gag order

Thirty news organizations have asked the Idaho Supreme Court to overturn a gag order in a case against a man accused of stabbing four students to death.
19 hours ago
Nathan Chasing Horse stands in court. Monday, Feb. 6, 2023, in North Las Vegas, Nev. Nathan Chasing...
Associated Press

‘Dances With Wolves’ actor charged in 2018 rape in PNW

Canadian police confirmed Tuesday they are pursuing a criminal case against a former "Dances With Wolves" actor who was arrested last week and charged in Nevada with sexually abusing and trafficking Indigenous women and girls.
19 hours ago
Associated Press

Tiny California mouse wins Guinness award for longevity

SAN DIEGO (AP) — A tiny California mouse now has a big title after winning a Guinness World record for longevity. A Pacific pocket mouse named Pat — after “Star Trek” actor Patrick Stewart — received the Guinness approval Wednesday as the oldest living mouse in human care at the ripe age of 9 years […]
19 hours ago
This shows a Chinese Dahua brand security camera in Sydney, Australia, Thursday, Feb. 9, 2023. Aust...
Associated Press

Australian Defense Department to remove Chinese-made cameras

CANBERRA, Australia (AP) — Australia’s Defense Department will remove surveillance cameras made by Chinese Communist Party-linked companies from its buildings, the government said Thursday after the U.S. and Britain made similar moves. The Australian newspaper reported Thursday that at least 913 cameras, intercoms, electronic entry systems and video recorders developed and manufactured by Chinese companies […]
19 hours ago
In this photo provided by the North Korean government, North Korean leader Kim Jong Un, center, ack...
Associated Press

North Korea’s Kim Jong Un presides over big military parade

SEOUL, South Korea (AP) — North Korean leader Kim Jong Un brought his young daughter to a huge military parade showing off the latest hardware of his fast-growing nuclear arsenal, including intercontinental ballistic missiles designed to reach the United States, state media said Thursday. North Korean photos of Wednesday night’s parade in the capital, Pyongyang, […]
19 hours ago
FILE - Filmmaker Ken Burns walks with inmate Rahsaan Thomas at San Quentin State Prison in San Quen...
Associated Press

‘Ear Hustle’ podcast co-host is free from San Quentin prison

SAN FRANCISCO (AP) — A co-host of “Ear Hustle,” the Pulitzer Prize-nominated podcast produced behind bars, was released from San Quentin State Prison on Wednesday, a year after California Gov. Gavin Newsom commuted his sentence. Rahsaan “New York” Thomas, 52, left the lockup near San Francisco and was greeted by his fellow podcast co-hosts Walter […]
19 hours ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Tesla shares tumble after company misses delivery target