Tesla Inc. delivered fewer vehicles than analysts expected last quarter, Report informs referring to Bloomberg.
The company handed over 405,278 vehicles to customers in the last three months, short of the 420,760 average estimate compiled by Bloomberg.
While the total was a quarterly record for Tesla, the company opened two new assembly plants last year and still came up short of its goal to expand deliveries by 50%.
After Chief Executive Officer Elon Musk predicted an “epic” end to the year, Tesla proceeded to cut vehicle prices and production in China, then offered $7,500 discounts in the US. Concerns about rising interest rates, inflation and other economic headwinds — plus alarm over Musk’s antics on Twitter, which he now owns — sent Tesla shares plunging 37% in December and 65% last year.
“We believe that Tesla is facing a significant demand problem,” Toni Sacconaghi, a Bernstein analyst with the equivalent of a sell rating on the stock, wrote in a report Monday. “We believe Tesla will need to either reduce its growth targets (and run its factories below capacity) or sustain and potentially increase recent price cuts globally, pressuring margins.”