February 8, 2023


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Tesla stock fell 10% after the delivery report

Tesla vehicles are displayed at a sales and service center in Vista, Calif., June 3, 2022.

Mike Blake | Reuters

shares Tesla It fell 10% Tuesday morning, the day after the electric car maker’s report Vehicle production and delivery figures in the fourth quarter of 2022.

Deliveries are the closest approximation to sales revealed by Tesla. The company reported 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year. These numbers represent a record for Elon MuskLed by the auto industry, growth of 40% in deliveries year on year, but fell short of analysts’ expectations.

According to a consensus of analyst estimates compiled by FactSet, as of December 31, 2022, Wall Street was expecting Tesla to record about 427,000 deliveries for the fourth quarter of the year. Estimates updated in December, which are included in the FactSet consensus, range from 409,000 to 433,000.

These recent estimates were in line with a consensus compiled by the company and distributed by Martin Ficha, Tesla’s vice president of investor relations.

Some Wall Street analysts think missing Tesla shipments spell trouble for the electric car maker, but others think that Opportunity to buy the company in 2023.

Baird analyst Ben Kallo, who recently named Tesla a top pick for 2023, maintained his outperform rating and said he will remain a buyer of the stock ahead of the company’s earnings report, which is scheduled for January 25.

“Deliveries in the fourth quarter missed consensus but exceeded our estimates,” he said in a note on Tuesday. “Importantly, production increased nearly 20% sequentially which is what we expect to continue into 2023 as the giant plants in Berlin and Austin continue to ramp up.”

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Analysts at Goldman Sachs said they view the delivery report as “increasingly negative,” and view Tesla as a company “well-positioned for long-term growth.” Goldman reiterated the buy rating on the stock in a note on Monday, and said making vehicles more affordable in a challenging macro environment will be a “major driver of growth.”

“We believe the main discussions from here will be about whether vehicle deliveries, margins and Tesla’s brand can be accelerated,” the analysts said.

Tesla shares suffered a year-long sell-off in 2022, which led to this CEO Musk to tell employees in late December, not to be “too upset by the stock market frenzy”.

musk Blame The decline in Tesla’s stock price is due in part to higher interest rates. But critics point to his rocky $44 billion Twitter Acquisitions as the biggest offender of the segment.

Morgan Stanley analysts said they believe the company’s share price weakness is a “buying opportunity.”

“Between a deteriorating overall background, higher record affordability, and increased competition, there are hurdles for all auto companies to overcome in the coming year,” they said in a note on Tuesday. “However, against this backdrop, we believe TSLA has the potential to expand its leadership in the electric vehicle race, as it leverages cost and scale advantages to distance itself from the competition.”

CNBC’s Laura Kolodny and Michael Blum contributed to this report.