Tesla stock drops to start 2023, as the EV maker’s vehicle delivery forecasts are not met

Elon Musk, CEO of Tesla.MARK RALSTON/AFP/Getty Images
Tesla stock dropped as high as 7% on its first trading day in 2023. The EV maker reported only 405,000 deliveries in the fourth-quarter, a decrease of the 430,000 expected. South Korea’s antitrust regulator announced that it had fined Tesla $2.2 million for false advertisement.

Shares fell as high as 7% the first day of trading after a turbulent 2022, when Tesla stock dropped 65%.

After the electric-vehicle manufacturer said that it had delivered fewer vehicles than expected over the past 12 months, the stock fell. The company stated that it delivered 1.31 million vehicles, which is below its goal of 1.4 million.

Tesla delivered 405,000 units in the fourth quarter. This is less than the 430,000 expected.

Elon Musk’s car business was hit hard by these deliveries, along with production problems in Shanghai because of COVID-19. Musk blames the slide on macro headwinds as well as Fed monetary policy.

As you can see, other growth stocks have been affected by rising interest rates. Over the past 12 months, global markets suffered a 20% drop in S&P 500 and a near 20% decline in S&P 500. Musk’s acquisition and subsequent social media actions have attracted the ire of Tesla investors and critics.

“The Twitter nightmare continues, as Musk uses Tesla to fund the red ink at Twitter. This gets worse every day as more advertisers flee Twitter with controversy increasing driven through Musk,” Dan Ives, Wedbush analyst, wrote in a recent note. “When does it end?”

Business Insider has the original article.
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By: prosen@insider.com (Phil Rosen)
Title: Tesla stock tumbles to start 2023 as the EV maker’s vehicle deliveries miss forecasts
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-price-today-elon-musk-evmaker-delivery-miss-car-2023-1
Published Date: Tue, 03 Jan 2023 14:53:52 +0000