Perception is working against Tesla Stock
Tesla's 2022 deliveries nearly matched its 2012-2020 total. Yet, the market punished it. That is indeed a high expectation from American investors.
Tesla stock slumped 12% Tuesday, its largest stock drop in two years, following news that the company failed to meet its delivery target for 2022, despite offering major end-of-year discounts in its biggest markets. The electric vehicle company aimed to deliver 1.41 million vehicles last year — an increase of 50% over 2021 — but handed over 1.31 million vehicles. The shortfall comes amid a turbulent time for the company, which saw its share price slide by 65% over the past year as it grappled with softening demand and COVID-related disruptions at its Shanghai factory.
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While a 40% overall increase in sales is impressive, Tesla is seeing increased competition from other EV makers, casting doubt on Tesla's future as the sector's dominant player.
- Musk's takeover of Twitter has prompted unease amongst Tesla investors; he has personally liquidated $39 billion of company stock over the past 18 months.