Tesla shares fall after the company failed to meet the supply plan

DETROIT (AP) — Tesla shares fell more than 12% on Tuesday in the first full day of trading since the company announced shipment figures for 2022 that fell short of targets.

Shares in the electric vehicle and solar panel maker closed at $108.10, down just under 70% since the start of last year. The stock hit its lowest level since August 2020, and Tesla’s market value fell to $341 billion, down from more than $1 trillion in April, according to FactSet.

Tesla said Monday that it sold a record 1.3 million vehicles last year, but that number falls short of CEO Elon Musk’s promise to increase shipments by 50% nearly every year.

The figure for 2022 surpassed the previous record of 936,000 vehicles delivered in 2021, but fell short of the 1.4 million needed to meet the company’s 50% growth target. Sales were up 40% year-over-year and production increased 47% to 1.37 million.

The shortfall came despite strong sales growth at the end of the year, which included rare US$7,500 discounts on the Model Y and 3, the company’s best-selling models. Analysts say Tesla has also offered discounts in China, leading some to wonder if demand for the company’s vehicles is declining.

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