Tesla said on Monday that deliveries for the last three months of the year were up 18 percent from the previous quarter, disappointing Wall Street analysts and putting pressure on Elon Musk, the company’s chief executive officer, focus on making cars instead of overhauling Twitter.
Tesla said delivered 405,000 electric cars between October and December Wall Street analysts have predicted that Tesla will sell about 420,000 vehicles, up from 343,000 vehicles in the third quarter.
The company sold a total of 1.3 million cars in 2022, a 40% increase from the previous year. This number falls short of the 50% annual growth target that Tesla has set for itself.
While the gains are impressive by auto industry standards, Tesla has become the most valuable automaker in the world by growing at the breakneck pace typically seen in tech companies. in Silicon Valley.
In recent months, Tesla has proved vulnerable to competition from established automakers, and rising borrowing rates have made its electric cars more expensive for borrowers. The sign that Tesla was mortal contributed to a 65 percent Tesla stock tumbles in 2022 and has investors focused more on conventional measures like sales and profits than on dreams of world domination.
Fourth-quarter deliveries were below analysts’ forecasts, who had lowered their expectations, and less than what Tesla executives had suggested just a few months ago. Tesla says it made 440,000 cars in the quarter, 34,000 more than it delivered, suggesting supply chain problems and manufacturing woes weren’t the main explanation for the sales. disappointed.
Martin Viecha, head of investor relations at Tesla, said on Twitter that the gap between delivery and production reflects the vehicles being shipped to customers.
There are no deals in New York on Monday because of the New Year holiday. But the numbers will likely reinforce investors’ fears that Mr Musk is too focused on Twitter, the company he acquired in October.
“There’s no denying it,” said Gary Black, chief executive officer of Future Fund, an investment fund. say on Twitter. He predicts that analysts will reduce their estimates for Tesla’s revenue and profit in 2023. Tesla will report 2022 earnings on January 25.
Last week, Mr Musk tried to reassure Tesla employees, telling them not to fixate on stock prices and repeating his assertion that the carmaker would become the world’s most valuable company, Reuters reported. .
China, the world’s largest auto market, is a major focus of investor interest. The sharp rise in Covid-19 cases in China has put pressure on demand and forced the company to periodically halt production at its largest factory, in Shanghai.
Additionally, Chinese manufacturer BYD has overtaken Tesla in electric vehicle sales in China, further casting doubt on Musk’s ability to achieve world domination in the auto industry.
Tesla’s sales growth rate far outstrips any of its major rivals in percentage terms. The company is also one of the most profitable automakers in the world and is ramping up new plants in Texas and Germany.
But the company faces stiffer competition from traditional automakers like Ford, General Motors and Volkswagen. These companies have decades of experience in mass-producing low-cost vehicles, and some investors believe those automakers can catch up to Tesla faster than expected.
Tesla also faces weaker consumer demand, in part due to rising interest rates. Waiting times for Tesla models have dropped, and the company has slashed car prices in China and offered incentives to buyers in the United States.
Auto buyers, especially left-leaning, environmentally conscious and electric car shoppers, also appear to be turning away from Tesla because of Musk. His erratic behavior on Twitter and fiery rhetoric on the social media platform have conservatives love him and Silicon Valley CEO but offend others.
Daniel Ives, an analyst at Wedbush Securities who begged Musk to focus his energies on Tesla, said fourth-quarter deliveries were pretty good considering the tough economic environment. “We believe this is a relatively good performance,” Ives wrote on Twitter.
Tesla sales may increase after their cars qualify federal incentives on January 1st. A new law has abolished the limit on the number of vehicles from any manufacturer that qualifies for a tax credit of up to $7,500. Tesla has used up its quota.
Tesla cars manufactured at the company’s plants in Texas and California also meet the requirement that the vehicle be manufactured in the United States, Canada, or Mexico to qualify for the credit.
Mr Musk, a prolific Twitter user, did not immediately react to Monday’s delivery numbers. On Sunday, he wished his followers “a great day on January 1, 2023,” adding, “One thing’s for sure, it won’t be boring.”
