Tesla, Inc., an American multinational automotive and clean energy company and Electric car maker, has delivered a record vehicles previous year, 2022.
According to the automotive and clean energy company, it sold 1.3 million vehicles last year, which is 40 percent more than it did in last year 2021.
However, notwithstanding the record delivery, the firm, led by billionaire Elon Musk, fell short of Wall Street sales forecasts for the final months of the year.
In a statement to investors, Tesla said it had to deal with “significant Covid and supply chain related challenges throughout the year”.
Meanwhile, earlier on Tuesday authorities in South Korea said they would fine Tesla $2.2m (£1.8m) for failing to tell its customers about the shorter driving range of its electric vehicles in low temperatures.
The Korea Fair Trade Commission said the company had exaggerated the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers”.
The company’s shares sank by more than 12% on Tuesday after the update.
The slide in the share price on Tuesday wiped more than $50bn (£41bn) off Tesla’s market value, which has long been seen as outsized compared with carmakers like Ford and General Motors, which make more vehicles.
Tesla Shares Tumble
Tesla shares tumbled 65% last year, 2022 which was its worst year since going public in 2010, as investors worried about disruptions to production, concerns over a slowdown in demand and Mr Musk’s focus on newly acquired Twitter.
Moreover, challenges in China are partly behind the stock falls. The world’s second-largest economy accounts for around 17percent of Apple’s sales and 23% of Tesla’s revenue, making it a significant market for both American companies.
“China is the hearts and lungs of both demand and supply for both Apple and Tesla. The biggest worry for the Street is that the China economy and consumer are reining in spending and this is an ominous sign” for Tesla, Daniel Ives, senior equity analyst at Wedbush Securities, noted.
The multi-billionaire bought the social media platform at the end of October for $44bn (£36.4bn) and has spent much of his time since then trying to turn the business around even as Tesla faces rising challenges.
Like other car makers, Tesla is grappling with the likelihood of slowing demand for vehicles as customers deal with rising borrowing costs and concerns about an economic slowdown.
Tesla also faces competition from traditional motor manufacturing giants such as Ford and General Motors, as well as newer entrants to the market like Rivian and Lucid in the US and China’s BYD and Nio.
Highlighting the logistics issues faced by the world’s most valuable car maker, deliveries in the fourth quarter of the year were also about 34,000 fewer than Tesla produced.
The shortfall Is unusual for Tesla, as it had previously managed to deliver about as many vehicles as it produced.
In October Chief Executive Officer, Musk, noted he was working to resolve the issue, and pushed back on the idea that demand was hurting.
The company Is scheduled to announce financial results for the fourth quarter of 2022 and the year as a whole on 25th January, 2022.
Tesla said in a separate statement that it plans to host its Investor Day on 1st March and livestream the event from its Gigafactory in Texas.
“Our investors will be able to see our most advanced production line as well as discuss long term expansion plans, generation 3 platform, capital allocation and other subjects with our leadership team.”
Tesla
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