Elon Musk’s Tesla has reportedly missed its target for vehicle delivery in the final quarter of 2022, resulting in analysts questioning possible issues with demand for Musk’s pricey electric cars.
MarketWatch reports that Tesla has missed its target for car deliveries in the final quarter of 2022, leading analysts to speculate about possible issues with demand for the company’s electric vehicles. According to a statement on Monday, Tesla delivered 405,278 cars in the year’s final three months, an increase of 31.3 percent from the same period in 2021, but falls short of the estimates for the quarter at 431,117. This marks the first time that Tesla has failed to meet analysts’ expectations for car deliveries and has led to concerns about demand for the company’s EVs.
(Photo by Justin Sullivan/Getty Images)
These concerns have been exacerbated by Tesla’s recent decision to slash prices for many vehicles, implying that the company is struggling to sell its cars. This is a significant shift since the company has notoriously had to handle years of backlogged purchase requests as production increased. Analysts have also highlighted Tesla’s increasing competition in the Chinese EV market, where many other manufacturers are vying for market share.
“We believe that many investors underestimate the magnitude of the demand challenges Tesla is facing and that 2023/24 numbers could materially reset,” warned Bernstein analyst Toni Sacconaghi in a note on Monday. “We also worry about the potential for broader market pressure amid higher rates/slower consumer spending, continuing to impact higher valuation stocks such as TSLA disproportionately.”
Wedbush analyst Dan Ives, who has an “outperform” rating and a $175 price target on Tesla’s stock, agreed that “demand cracks [are] clearly happening at Tesla and the [fourth quarter] numbers are not bullish.”
Ives recently criticized Musk for his management of Tesla As Breitbart News previously reported:
Wedbush analyst Dan Ives commented: “With China the core linchpin to the Tesla bull thesis, worries are growing around what the softening demand picture looks like for 2023 given the dark macro clouds and increasing domestic EV competition.” Ives also reduced his fourth-quarter delivery targets for Tesla from 450,000 to 410,000.
Ives discussed the current view of Tesla CEO Elon Musk, writing: “At the same time that Tesla is cutting prices and inventory is starting to build globally in face of a likely global recession, (CEO Elon) Musk is viewed as ‘asleep at the wheel’ from a leadership perspective for Tesla at the time investors need a CEO to navigate this Category 5 storm.”
Breitbart News recently reported that Tesla’s stock suffered its worst month, quarter, and year on record. Tesla shares ultimately declined 65% in 2022, with a 53.6% plunge in the final three months of 2022, while the S&P 500 index declined 19.4% for its worst year since 2008.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
COMMENTS
Please let us know if you're having issues with commenting.