Tesla car sales increased 18% last quarter
Tesla on Monday said it delivered 405,000 electric cars in the last three months of the year, an 18% increase from the previous quarter that fell short of analysts’ estimates and could bolster investor fears that the automaker of electric cars is losing momentum.
Wall Street analysts had predicted that Tesla would sell about 420,000 vehicles from October to December, up from 343,000 vehicles in the third quarter.
The company sold a total of 1.3 million cars in 2022, an increase of 40% over the previous year. That was below the 50% annual growth target that Tesla had set for itself.
The increases in deliveries were impressive compared to established automakers, but were lower than analysts predicted and Tesla executives suggested just months ago. Wall Street has become decidedly pessimistic about Tesla, fearing chief executive Elon Musk is too focused on Twitter, which he acquired in October.
Tesla’s problems include the sharp rise in Covid cases in China which is weighing on demand and forcing the company to suspend production at its largest factory, in Shanghai. The company also faces more intense competition from traditional automakers such as Ford, General Motors and Volkswagen, and weakening consumer demand as interest rates rise. Wait times for Tesla models have fallen, and the company has reduced car prices in China and offered incentives to buyers in the United States.
Tesla’s stock value has fallen this year as investors lose faith in Mr Musk’s vow that the company would sell twice as many cars as Toyota, the world’s largest automaker by volume, by the end of the year. end of the decade.
China, the world’s largest auto market, is at the center of investors’ concerns. Chinese automaker BYD has overtaken Tesla in electric vehicle sales in China, casting further doubt on Mr Musk’s ability to dominate the world in the auto industry. Tesla has repeatedly had to halt production in China due to supply chain issues and rising Covid cases.
Mr Musk last week tried to reassure Tesla employees, telling them not to fixate on the stock price and reiterating claims that the automaker would become the world’s most valuable company, a reported Reuters.
Tesla’s sales growth outpaces any major competitor by percentage. The company is also among the most profitable automakers in the world and is setting up new factories in Texas and Germany.
But investors are focused on the risk that traditional automakers, which have decades of experience mass-producing vehicles at lower cost, could catch up with Tesla faster than expected.
Car buyers, especially left-leaning, environmentally conscious consumers who tend to buy electric cars, also appear to be turning away from Tesla because of Mr. Musk. His erratic behavior on Twitter and impassioned rhetoric on the social media platform endeared him to conservatives and Silicon Valley executives, but outraged many others.