Tesla shares are having their worst day in two years with weaker-than-expected sales

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Tesla shares, down more than 12% in Tuesday’s trading, also fell Weaker than expected global sales The company has caused a continuation of the massive drop in its share price that began last year.

Tesla posted record 2022 sales of 1.3 million vehicles, up 40% from the 2021 total, but well below the 50% growth goal the company set early in the year. While he already warned that he would Miss this aggressive target for the entire year, its fourth-quarter sales of 405,278 vehicles were much weaker than expected. It represented just 31% growth from the previous year, and was well below the median estimate of 431,000 according to analysts polled by Refinitiv.

12.2% decline in Tesla

Stocks trading Tuesday was the worst day for Tesla

shares in more than two years. The company’s shares ended 2022 down 65% for the year, significantly downsizing. Musk net worth and knock on it From his position as the richest person in the world. It was the worst year ever for Tesla

which gained 743% in 2020 and another 50% in 2021.

The drop in sales came despite the company cutting prices twice in December for US buyers who completed purchases by the end of the year. The fact that global sales were well below the 439,000 cars it made in that period has raised new concerns about weak demand for Tesla cars in the face of several headwinds. These include Higher interest ratesAnd the Increased competition for electric vehicles From applicable automakers Along with upstart electric car makers, and Backlash against Elon Musk, CEO of Tesla since then A controversial takeover of Twitter early in the quarter.

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“Demand in general is starting to break down a little bit for Tesla and the company will need to adjust and lower prices particularly in China, which remains key to the growth story,” said Dan Ives, technology analyst at Wedbush Securities. “Cinderella’s journey is over for Tesla.”

— CNN’s David Goldman contributed to this report

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