A Tesla dealership is seen in Austin, Texas, on Tuesday, Jan 3. At a value of about US$341 billion, Tesla is still the world’s most valuable automaker, even though its production is a fraction of rivals such as Toyota Motor Corp. – AFPpic: Tesla Inc shares kicked off 2023 with a thud, plunging more than 12% on Tuesday on growing worries about weakening demand and logistical problems that have hampered deliveries for the world’s most valuable automaker.
The sell-off came after Tesla missed market expectations for fourth-quarter deliveries despite shipping a record number of vehicles. Global automakers have in the past few months battled a demand downturn in China, the world’s top auto market where the spread of Covid-19 has hit economic growth and consumer spending. Tesla is offering hefty discounts there and a subsidy for insurance costs.
Tesla’s market value has declined by about US$370 billion since chief executive Elon Musk closed the deal to buy social media firm Twitter. Tesla delivered 405,278 vehicles in the fourth quarter, short of analysts’ estimates of 431,117. For all of 2022, its deliveries rose by 40%, missing Musk's 50% annual target.