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Elon Musk’s Tesla dumped a record number of cars this year, new company data has revealed, despite recent declines in the EV company’s current market value.
According to new delivery figures released by the automaker, the company delivered an impressive 1.3 million vehicles last year, an increase of more than 40 percent over the previous year.
The company’s fourth-quarter numbers still fell short of Wall Street expectations, however, as more than $600 billion of the company’s share price was wiped out in a matter of months.
The company’s current financial problems arise in the midst of increased competition from other automakers now embracing the arrival of electric vehicles, as well as recent factory closures in China due to rising Covid numbers.
Tesla unloaded a record number of cars this year, new delivery numbers have revealed. The data is the closest approximation of sales for the company, which has seen its share price fall amid heightened competition and the recent closure of its Shanghai factory (pictured).
The company’s shares currently sit at $123 a share, a 47 percent decline from the $233 price seen six months ago, and 69 percent from just a year ago when it nearly topped $400.
The company’s quarterly statement, released Monday, showed that despite an overall successful year, Tesla underperformed in the fourth quarter.
In the past three months, Tesla delivered 405,278 vehicles, the data shows, well below the median estimate of 431,000 set by analysts.
The data, which serves as the closest approximation of the company’s sales, illustrates that while it was successful in the early stages of 2022 and the year before, Tesla’s pace of growth is slowing.
The revelations come after the Musk-led company’s deliveries nearly doubled in 2021 and quadrupled in 2020.
However, as With recession fears lingering and higher interest rates making borrowing less attractive, the automaker has been a slowdown in demand.
The company’s stock price plummeting tells part of that story.
Valued at more than $1 trillion last year, the company is currently valued at $385 billion, a reduction of approximately 65 percent. The firm was one of only six companies to reach the hallowed trillion dollar mark.
The data, which serves as the closest approximation of the company’s sales, illustrates that while it was successful in the early stages of 2022 and the year before, Tesla’s growth is slowing.
The missed growth targets come amid a period of turmoil for the automaker, which in June announced it would raise prices on all its car models by a steep $6,000, the second time it has done so in a matter of six months. . Tesla cars sit parked in a lot at the Tesla factory in April
Meanwhile, the company’s shares are sitting at $123 a share, down 47 percent from the $233 price seen six months ago, and 69 percent from just a year ago, when it nearly topped $400.
The stock’s all-time high came a few months earlier, in November 2021, when it posted a record price of $407 per share.
The missed growth targets come amid a period of turmoil for the automaker, which in June announced it would raise prices on all its car models by a steep $6,000, the second time it has done so in a matter of six months. .
Since then, evidence of waning buyer interest in the company’s relatively expensive line of cars has become more and more abundant, as many consumers flock to more affordable options that hit the market for stalwarts of the company. industry like Ford and GM, and EV upstarts like Rivian.
A recent production cut in China that led to the closure of the company’s Shanghai maker last week made matters worse, unnerving investors who were already fed up with the rebates the company had been offering customers. who opted for a car. delivery, initially offering a discount of $3,750 and then doubling the rebate to $7,500 last month.
A recent production cut in China that led to the closure of the company’s Shanghai maker last week made matters worse, unsettling investors who were already tired of the rebates the company had been offering. The maneuvering sent shares tumbling 37 percent in December alone.
The maneuvering, coupled with general economic uncertainty surrounding multiple industries, sent shares tumbling 37 percent in December alone.
Despite the troubling numbers, the company was quick to tout the recent results as a victory Monday, thanking customers and employees for helping the company “deliver to a great 2022 in light of the significant challenges related to Covid-19.” and the supply chain throughout the year”, in an official statement. declaration.
The company added that it was proud of its performance over the past year and that it looks forward to a more lucrative 2023.
“We continued to transition to a more even regional mix of vehicle builds which again led to a further increase in cars on the road at the end of the quarter,” the statement read.
Meanwhile, founder Musk, who sold billions of dollars of his Tesla stakes last year to finance the purchase of Silicon Valley-based social media company Twitter, has seen an even steeper percentage of his share evaporate. wealth in recent months.
The drastic drop has also been blamed on jitters over declining demand for electric cars and owner Elon Musk’s distraction with Twitter, which many say has hurt Tesla’s finances.
Since closing that deal, during which the South African tycoon shelled out a whopping $44 billion to buy the platform, Musk, whose wealth is tied primarily to Tesla shares, has lost nearly $200 billion in net worth in only a few months. No other person in history has lost such a large sum.
The drastic drop has been blamed on jitters over declining demand for electric cars and Musk’s distraction with Twitter, which many say has hurt Tesla’s finances.
Musk has also become the subject of controversy through his sweeping changes to the company and its social media platform, as well as his frivolous use of the website to express his beliefs and opinions at times of contention.
Meanwhile, as Tesla shares plunge, short sellers including Microsoft founder Bill Gates are poised to make billions for betting against the electric car company. Musk has yet to comment on his company’s disappointing year-end numbers.