Nasdaq 100: Tesla shares down despite record deliveries
China remains a headwind for Tesla and concerns continue about CEO Elon Musk’s absence as he sorts out his other business interests, including Twitter and SpaceX.
(Video Transcript)
Tesla remains on the backfoot
One of the big stocks of 2022 on the way down was Tesla, as the electric vehicle manufacturer slumped some 65% overall in 2022. And we started the account for 2023 on the back foot as well.
Share price chart
Let's take a look at the chart before we go into detail as to what's happening with the stock of the company.
This is the long-term chart. This red box represents the record high that we had back on the 4th of November, all the way down to the recent lows, having lost almost 75% of the entire market cap of the business.
The vertical dotted line represents the point at which it started out 2022, and here we are now on the first trades all sessions on the IG platform, early doors ahead of the start of the cash trading session today, on the way down by a margin of just over three-and-a-half percent.
Yesterday, the electric vehicle maker reported record production and deliveries for the fourth quarter (Q4), but the downside came as it missed estimates.
Q4 numbers
Let's take a look at the numbers. Tesla delivered 405,278 vehicles in the last three months of the year compared with Wall Street expectations of 431,000. During the same period this time last year, the company delivered just 308,600 vehicles. So you can see there is a big improvement to that record quarter, but it's just not as good as had been expected.
What's going on? Well, the logistical problems persist for the company. It's all about supply chain. Some might say it worsened when we compared production and delivery numbers.
In the fourth quarter, Tesla produced 439,000 vehicles, meaning deliveries fell around about 34,000. And that was short of the overall production figures.
In the third quarter, the company delivered about 22,000 units, fewer than production. Delivering fewer cars that it makes has been rare for the automaker, which in previous quarters delivered more or similar numbers to the vehicles produced.
So what's going on? Well, it's all about China, which has been a real headwind for the electric vehicle manufacturer. Add to this the problems the company's been facing, because its CEO Elon Musk has had his feet under the Twitter table as opposed to Tesla. This has added to the problems for the electric vehicle manufacturer.
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