On Tuesday, the first trading day since the firm disclosed 2022 delivery targets had not been met, shares of Tesla dropped.
The stock of the manufacturer of solar panels and electric vehicles was down over 13% in late afternoon trade, and it has fallen by just under 70% since the year’s beginning.
The share price fell to its lowest level since August 2020, and its market worth decreased to $334 billion from over $1 trillion just a few months earlier.
Tesla announced Monday that it sold a record-breaking 1.3 million cars in 2018, although the figure fell short of CEO Elon Musk’s promise to increase deliveries by 50% annually.
The shortfall occurred despite a significant year-end sales drive that featured unusual $7,500 discounts in the US on the company’s best-selling Models Y and 3.
Analysts reported that Tesla also provided discounts in China, which caused some people to wonder if demand for the company’s automobiles is waning.
The output of Tesla Inc.’s Shanghai factory was hindered by the new coronavirus, which was experiencing an increase in cases in China. Tesla Inc. is situated in Austin, Texas.
Investors were supposed to focus on missing the delivery target, according to Cowen and Co. analyst Jeffrey Osborne, but he only observed a somewhat negative response “after severe weakening the past two weeks on production cuts in China and discounting.”
Osborne stated in a note to investors early on Tuesday that for the company to receive additional support, investors will need to witness stability in profit margins despite lower pricing and demand and order trends reflecting resumed growth this year.
Tesla stated on Monday that it would host an investor day event on March 1 at its manufacturing close to Austin, ostensibly in a bid to support the stock price.
Investors will have the chance to see Tesla’s manufacturing facility, discuss future growth prospects, and view the platform that will help the company’s next generation of vehicles.
According to Forbes, Musk has lost billions due to the Tesla stock slump, knocking him off the top rank for the world’s richest person.
Musk’s $44 billion acquisition of Twitter and his sale of Tesla stock to help finance the transaction contribute to the price decline.
Since starting to develop a position on Twitter in April, Musk has sold roughly $23 billion in shares of his vehicle company, totaling another $2.58 billion in sales last month.
Many investors are concerned that Musk has lost focus on the electric vehicle company while serving as CEO of Twitter.
Musk declared he would step down as CEO of Twitter when he found someone to lead the social media site.