During yesterday's session on Wall Street, which generally proceeded in a good mood with rising indexes, the share price of Elon Musk's companyplunged. Tesla shares closed with a loss of more than 8.5 percent, which was the worst day for the electric car maker in four months.
The main reason was said to be disappointment with the company's performance relative to Wall Street investors' expectations. Tesla reported quarterly delivery results that were below expectations, which were said to be related to logistics problems. In turn, the declining outlook for global economic growth may increase doubts about whether demand for electric cars will be satisfactory for the company. Elon Musk's company delivered 343,000 cars in the third quarter of 2022. The previous year, in the same quarter, there were 241,300 vehicles. Despite the y/y increase, the market expected numbers of 364,660. In addition, Tesla seemed to struggled in the third quarter with soaring commodity prices, management turnover and growing problems at its new factories in Germany and Texas.
Source: Conotoxia MT5, Tesla, H1
Opinions on Tesla after news from the company
"While Tesla continues to point to supply constraints as a factor in reducing supply, the potential for demand destruction is high," said Ryan Brinkman, an analyst at JP Morgan. Analysts warn that demand could lose steam in the coming quarters, as shown by Toyota's U.S. sales, which fell 7.1 percent. According to Reuters, Tesla would need to deliver more than 450,000 vehicles in the fourth quarter to meet its goal of growing deliveries by 50 percent annually. Reuters reported that the company has set a target of producing about 495,000 Model Y and Model 3 units during the period.
Cathie Wood and Ark seemed tempted to buy Tesla shares
The decline in the stock price seems to have tempted one of the more prominent US managers, Cathie Wood, to buy. Funds backed by Wood's Ark Investment Management LLC bought 132,213 shares of Elon Musk's company on Monday, marking Tesla's first purchase since mid-June, according to data compiled by Bloomberg. The purchases on Monday were made by the flagship Ark Innovation ETF and Ark Next Generation Internet ETF, Bloomberg reported.
Source: Conotoxia MT5, ARKK, W1
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Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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