EV - Tesla Stock Down as It Seeks to Ease Demand Concerns Over Likely 2022 Delivery Target Miss
Tesla Stock ( NASDAQ:TSLA )
Tesla stock was down nearly 6% in after-market trading.
Tesla Inc ( NASDAQ:TSLA ) said on Wednesday it expected to miss its vehicle delivery target this year, but downplayed concerns about softening demand after its revenue missed Wall Street estimates.
Chief Executive Elon Musk told analysts on a conference call there was excellent demand in the fourth quarter, addressing investors’ concerns that buyers could be discouraged by the weak global economy and high prices for Tesla vehicles.
But Tesla said some logistics challenges would persist, with fourth-quarter deliveries growing by less than 50% while production rose 50%.
“I wouldn’t say we’re recession-proof, but it’s certainly recession resilient,” Musk said.
Previously, Tesla had repeatedly said it was aiming for 50% growth this year from the 936,172 cars it delivered in 2021.
Tesla is expanding fast despite global economic jitters, and investors are closely watching for signs that consumer demand is cooling as inflation surges and interest rates climb.
“This quarter was not rainbows and roses and it leaves investors wanting more from Tesla which is held to a higher standard than every other automaker,” Wedbush analyst Daniel Ives wrote in a client note.
“Tesla must now prove again to the Street that the robust growth story is running into a myriad of logistics issues as opposed to demand softening with EV competition coming to all angles around the globe.”
The electric carmaker’s third-quarter automotive gross margin was 27.9%, missing analysts’ estimates and down from...
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