New York CNN —
Tesla shares fell more than 12% on Tuesday as weaker-than-expected global sales meant the company’s share price continued a massive slide that began last year.
Tesla reported record sales of 1.3 million vehicles for 2022, up 40% from 2021 but well below the 50% growth target the company set earlier this year. While it had warned it would miss that aggressive full-year target, its fourth-quarter sales of 405,278 cars were far weaker than feared. That represented growth of just 31% year over year and well below the median estimate of 431,000, according to analysts polled by Refinitiv.
The 12.2% drop in Tesla (TSLA) stock in trading on Tuesday marked the worst day for Tesla (TSLA) stock in more than two years. The company’s shares ended 2022 down 65%, significantly draining Musk’s net worth and knocking him out of his position as the world’s richest person. It was the worst year ever for Tesla (TSLA) stock, which gained 743% in 2020 and another 50% in 2021.
The decline in sales came despite the company’s two price cuts in December for U.S. buyers who completed their purchases by year-end. The fact that global sales fell well short of the 439,000 cars built during that period raised new concerns about weaker demand for Tesla cars amid numerous headwinds. These include higher interest rates, increased EV competition from established automakers and emerging EV makers, and backlash against Tesla CEO Elon Musk since his controversial acquisition of Twitter earlier in the quarter.
“Demand for Tesla is starting to dip somewhat overall and the company needs to adjust prices and cut prices particularly in China, which remains key to the growth story,” said Dan Ives, technical analyst at Wedbush Securities. “The Cinderella ride is over for Tesla.”
– CNN’s David Goldman contributed to this report