Elon Musk’s Tesla has unloaded a record number of cars this year, new data from the company revealed – despite recent reductions in the EV company’s current market value.
According to the automaker’s new delivery figures, the company delivered an impressive 1.3 million vehicles last year – an increase of more than 40 percent over the previous year.
However, the company’s fourth-quarter numbers fell short of Wall Street’s expectations as more than $600 billion of the company’s stock price has disappeared in a matter of months.
The company’s current financial woes stem from increased competition from other automakers, who are now embracing the advent of electric vehicles, as well as recent plant closures in China due to rising Covid numbers.
Tesla unloaded a record number of cars this year, fresh delivery numbers have revealed. The data is the closest approximation of sales for the company, whose share price has fallen sharply amid increased competition and the recent closure of its Shanghai plant (pictured).
The company’s shares are currently at $123 a share — down 47 percent from the price of $233 six months ago and 69 percent from the price a year ago when it topped nearly $400
The company’s quarterly statement released on Monday showed that Tesla underperformed in the fourth quarter despite an overall successful year.
In the past three months, Tesla delivered an underwhelming 405,278 vehicles, the data shows — well below analysts’ median estimate of 431,000.
The data — which serves as the closest approximation of the company’s sales — illustrates that Tesla’s pace of growth is slowing, even as it saw success in the early stages of 2022 and last year.
The revelations come after shipments for the Musk-led company nearly doubled in 2021 and quadrupled in 2020.
The data — which serves as the best approximation of the company’s sales — illustrates that Tesla’s growth is slowing, although it saw success in the early stages of 2022 and last year
However, as fears of a recession linger and higher interest rates make borrowing less attractive, the automaker has seen demand slow.
The company’s falling stock price tells something of that story.
The company, which was valued at more than $1 trillion last year, is currently valued at $385 billion — down about 65 percent.
The company was one of only six companies to reach the hallowed trillion dollar mark.
The missed growth targets come at a time of turbulence for the automaker, which in June announced it would raise prices on all of its car models by a substantial $6,000 for the second time in six months. Tesla cars stand in a parking lot at the Tesla factory in April
The company’s shares, meanwhile, are at $123 a share — down 47 percent from the price of $233 six months ago and 69 percent from a year ago when it topped nearly $400.
The stock hit its all-time high a few months earlier, in November 2021, when it posted a record price of $407.
The missed growth targets come at a time of turbulence for the automaker, which in June announced it would raise prices on all of its car models by a substantial $6,000 for the second time in six months.
Since then, evidence of waning buyer interest in the company’s relatively pricey line of cars has continued to spread, as many consumers flock to more affordable options being launched by industry giants like Ford and GM and EV newcomers like Rivian.
A recent production cut in China, which saw the company’s Shanghai maker shut down last week, made things worse and initially unsettled investors who were already weary of the discounts the company had been offering to customers who opted for car delivery a rebate of $3,750 and then doubled the rebate to $7,500 just last month.
A recent reduction in production in China, which led to the company’s Shanghai manufacturer closing last week, made matters worse and unsettled investors who were already fed up with the discounts the company had been offering. The maneuvers caused the stock to collapse by 37 percent in December alone
The maneuvers, coupled with broader economic uncertainty across several industries, sent shares tumbling 37 percent in December alone.
Despite the worrying numbers, the company was quick to announce the latest results as a win on Monday, thanking customers and employees for helping the company achieve “a great 2022 given the significant Covid and supply chain challenges throughout the year.” to achieve,” in an official statement.
The company added that it is proud of its performance over the past year and looks forward to a more lucrative 2023.
“We continued the transition to a more even regional mix of vehicle designs, which in turn led to a further increase in cars in transit at the end of the quarter,” the statement said.
Meanwhile, founder Musk — who sold his multibillion-dollar Tesla holdings last year to fund an acquisition of Silicon Valley-based social media company Twitter — has sold an even larger percentage of his in recent months see fortunes fizzle out.
The drastic drop has also been attributed to nervousness about slowing demand for electric cars and owner Elon Musk’s distraction with Twitter, which many say has hurt Tesla’s finances
Since closing that deal — which saw the South African mogul spend a whopping $44 billion to buy the platform — Musk, whose fortune is tied mostly to Tesla stock, has lost almost $200 billion of his net worth in just a few months.
No other person in history has ever lost such a large sum.
The sharp decline has been attributed to nervousness about slowing demand for electric cars and Musk’s distraction from Twitter, which many say has hurt Tesla’s finances.
Musk has also been the subject of controversy for his sweeping changes to the company and its social media platform, as well as his frivolous use of the site to express his sometimes controversial beliefs and opinions.
As Tesla’s stock plummets, short sellers, including Microsoft founder Bill Gates, are poised to make billions betting against the electric car company. Musk has yet to comment on his company’s disappointing year-end results.