By
Bena Ilyas
April 23rd, 2024
On Tuesday, Tesla saw its stock take a significant downturn a day after posting its December vehicle production and delivery report.
Tesla Inc (NASDAQ: TSLA) stock recently plunged by more than 12% on the heels of the company’s Q4 2022 vehicle production and delivery report. Although Tesla’s numbers were a record, they fell short of analysts’ expectations.
On Tuesday, Tesla posted 405,278 deliveries for the fourth quarter of last year and 1.31 million total deliveries for all of 2022. The electric vehicle’s full-year figures represent a record 40% growth in deliveries compared to 2021. However, Wall Street expected Tesla to put out 427,000 deliveries for the concluding quarter of 2022. Furthermore, according to a FactSet consensus, estimates ranged from 409,000 to 433,000.
Although some analysts opine that Tesla’s latest delivery miss does not augur well for the company, others remain more optimistic. According to the latter group, the delivery development could provide a buying opportunity for Tesla stock in 2023.
Other noteworthy figures from the Tesla Q4 2022 report include total production (439,701) and total annual production (1.37 million).
Analysts Ponder Tesla Stock Prospects in 2023 Following Delivery Report
Bernstein’s Toni Sacconaghi predicts that Tesla could face a substantial demand problem in 2023. In a recently-issued note, he explained:
“Tesla’s annual order run rate in Q4, including significant discounting, was only about 1M units, and the company’s target is to sell close to 2M units in 2023. We expect demand challenges persisting in 2023.”
In addition, Sacconaghi also pointed out that none of Tesla’s models seems to be eligible for any Inflation Reduction Act rebates. The only notable exception is the EV maker’s Model Y 7-seat version, with the added seat option costing around $3000.
Meanwhile, Goldman Sachs views the Tesla delivery report in a more positive light, terming it an “incremental negative.” According to the banking giant, Tesla appears to be well-positioned for long-term growth. Furthermore, Goldman also recently reiterated its buy rating on Tesla stock. In addition, the leading bank suggested that making vehicles more affordable amid a problematic macroeconomic environment could further drive growth.
TSLA Battered by 2022 Tech Sell-Off
Before its stock development and delivery report, Tesla endured a yearlong tech sell-off in 2022. This lengthy downward spiral eventually prompted company CEO Elon Musk to implore Tesla employees to ignore the “stock market craziness.” In late December, the outspoken chief executive also partly ascribed Tesla’s declining shares to rising interest rates. In a tweet from December 20th, he offered:
“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed; people will increasingly move their money out of stocks into cash, thus causing stocks to drop.”
However, Musk’s critics instead point to his divided attention between Tesla and Twitter as another causative factor. The Tesla CEO acquired Twitter late last year after an explosive back-and-forth with the company’s executives. Musk offloaded Tesla shares worth tens of billions of dollars last year to partly finance the leveraged buyout. Furthermore, since taking over the popular microblogging platform, he has increasingly spent more time trying to reshape it.