Tesla stock is picking up right where it left off in 2022: lack of juice.
Shares of the electric-vehicle maker fell as much as 11% in Tuesday morning trade, with investors reacting to a lackluster fourth-quarter delivery figure released on New Year’s Day. Tesla was the top trending ticker on the Yahoo Finance platform.
Tesla saw deliveries rise 18% sequentially to 405,000 in the fourth quarter, missing consensus forecasts of 418,000. The number brought Tesla’s total deliveries in 2022 to 1.3 million units, up 40% year over year but below the company’s forecast of 50%.
The supply disruption only fueled further concern on the road about demand for Tesla’s vehicles — a key factor in why shares plunged 65% in 2022.
JPMorgan analyst Ryan Brinkman cut his earnings estimates and price target for Tesla on the back of weak earnings.
Brinkman expects Tesla to miss fourth-quarter earnings estimates ($1.19) when it reports later in January. For 2023, Brinkman now expects earnings of $4.60 per share, up from $4.84 previously.
The Tesla store is closed at the King of Prussia Mall on December 11, 2022 in King of Prussia, Pennsylvania (Photo by Mark Makela/Getty Images)
The analyst’s price target dropped to $125 from $150. He continues to rate the stock as underweight (sell equivalent).
“Beyond the impact on near-term financials, another implication we see from 4Q’s combination of softer-than-consensus volume and pricing is the impact on the stock’s growth narrative, which leads many investors to believe that the company is likely to increase unit volume by more than an annual growth rate of ~+50% [compound annual growth rate] until it’s the largest automaker in the world (management’s outlook is, “Over a multi-year horizon, we expect 50% compound annual growth in vehicle shipments”),” Brinkman said. “We have questioned the company’s ability to sustain this growth rate.”
Brian Sozzi is a freelance writer and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Click here for the latest stock tickers from the Yahoo Finance platform
The story goes on
For the latest stock market news and in-depth analysis, including events moving stocks, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on TwitterFacebook, Instagram, Flipboard, LinkedIn and YouTube