Logo on a Tesla vehicle. Credit: 123RF
Tesla shares slid 12.1% to $182.60 on Thursday, marking the stock’s steepest drop since May, after the US electric vehicle maker posted lower-than-expected revenue and worsening margin trends for the fourth quarter of 2023. The decline was also due to a more cautious and ambiguous outlook as chief executive Elon Musk warned of a “notably lower” sales growth rate for this year in its shareholder letter. Musk did not give a specific annual delivery goal as expected. Tesla’s sales for the three months ended Dec. 31 grew only 3% to $25.2 billion, which was below analysts’ estimate of $25.6 billion and the firm’’s lowest year-on-year growth rate over the past three years. Tesla also reported a gradual decline in gross margin from 19.3% to 17.6% throughout the year, as the company has repeatedly cut prices amid slowing demand globally and rising competition from China. The Thursday drop put Tesla’s market capitalization at roughly $581 billion, with $80 billion wiped out overnight. [CNBC]
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