Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Tesla stock slipped up following a less-than-stellar delivery outing that saw over 14,000 less cars shipped to customers.
Tesla Inc (NASDAQ: TSLA) stock recently experienced its biggest slide in four months, on the back of a disappointing delivery report. According to the premier electric vehicle manufacturer, this delivery snag resulted in waiting customers waiting less vehicles than anticipated. Tesla handed more than 343,830 vehicles to customers in the last three months, which falls short of the expected 358,000.
Due to its widening production and delivery gap, Tesla stock tumbled 8.6% on Monday to become the worst S&P 500 performer. In addition, this stock decline shaved off more than $71 billion in market value for the Texas-based electric vehicle company. Subsequently, the company’s latest logistics hurdles, in addition to bleak economic reports, have also cast fresh doubts on demand. Tesla’s stock tumble also dragged down the value of other electric vehicle manufacturers.
Comments on Sunken Tesla Stock, Delivery Headwind
Providing some exposition on the delivery situation, Tesla stated:
“As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks. In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter.”
Meanwhile, an analyst at Cowen & Co., Jeffrey Osborne, commented on Tesla’s current situation in a report which read:
“Naysayers on the Tesla story will point to the shortfall in 3Q as a demand issue. Monthly registrations and 4Q results will need to be monitored to better assess the situation.”
For years, Tesla has delivered huge batches of vehicles towards the end of each quarter. Chief executive officer Elon Musk has tried to improve on this by localizing production in all major regions. However, overall production is still suffering the effects of several constraints affecting the auto industry, including semiconductor shortages.
Musk Ukraine Comments Trigger Backlash from Country’s Top Government Officials
In other news, Musk incurred the wrath of Ukraine’s top officials for claiming he knows the likely outcome of the country’s war with Russia. In a Twitter statement, the outspoken Tesla CEO polled his more than 100 million followers on his given predictions. Among other things, Musk suggested that the Ukrainian territory of Crimea be permanently given to Russia. He also suggested that Ukraine remain neutral on joining the NATO defensive alliance.
Andrij Melnyk, the outgoing Ukrainian ambassador to Germany, profanely rebuked Musk’s tweet, whilst also disparaging Musk’s Tesla vehicles. Meanwhile, Ukrainian President Volodymyr Zelenskyy responded with a Twitter poll of his own, which seems to question Musk’s allegiance. Zelenskyy’s poll read “Which Elon Musk do you like more?” “One who supports Ukraine” or “One who supports Russia.”
The sharp responses from these prominent Ukrainian government officials, who are alluding to duplicity on Musk’s path, is noteworthy. This is because many Ukrainians may view the outspoken Tesla head in the light of a hero since the war began. The Ukrainian army and citizenry have been able to bypass internet outages in the country using Musk’s Starlink satellite communication system.