The value of Elon Musk’s Tesla stocks has decreased as the company fell short of its sales target in 2022, despite Musk’s recent $44 billion purchase of Twitter.
Elon Musk always tries to be in the limelight, whether it’s his upfront tweets or controversial purchases. Last year was not very good for him in keeping Tesla’s growth. We saw a steep decline in Tesla’s stock aligned with the current market trend.
Last year, Elon Musk’s Tesla stocks suffered a 65% drop due to his $44 billion purchase of Twitter and the company’s failure to meet its production and delivery growth goals for 2022. Although he briefly became the world’s wealthiest individual in 2022, Musk’s net worth declined. In the year’s final quarter, Tesla needed to sell 495,760 cars to meet its 50% growth target but only produced and delivered 439,000 and 405,000 vehicles, respectively. This contributed to the significant drop in Tesla’s stock value.
In 2022, vehicle deliveries increased by 40%, and production increased by 47%. However, Musk’s attention to his Twitter makeover was cited as the cause for the failure to reach production targets. The company explained at a recent conference that it was working towards a more evenly distributed regional balance of vehicle production, which resulted in an increase in the number of vehicles in transit at the end of the quarter.
Investors are concerned that issues with the supply chain and the impact of the COVID-19 pandemic in China will negatively affect Tesla’s sales shortly, as well as Musk’s diversion to Twitter. As a result, Musk has become the first to see his total wealth decrease by $200 billion following his $44 billion Twitter purchase. To increase car sales, Tesla recently announced price cuts for several models, including the Model 3 and Model Y, offering a $7,500 discount.
These risks have caused investors to reevaluate Tesla’s potential in a struggling economy. Despite being the most profitable car manufacturer, the only major automaker considered a growth stock. Investors are now more confident that Tesla will dominate the automobile industry in the same way that Apple leads the smartphone market and Amazon dominates online retail.
About Tesla
Tesla, Inc. is an American multinational corporation specializing in electric vehicles, energy storage, and solar panel manufacturing based in Palo Alto, California. Founded in 2003, the company specializes in electric vehicles, lithium-ion battery energy storage, and residential photovoltaic panels (through the subsidiary company named Tesla Energy) through hardware and software integration.
Tesla, Inc. is a public company that trades on the NASDAQ stock exchange under the ticker symbol TSLA. It was founded in 2003 by entrepreneur Elon Musk to produce electric vehicles at an affordable price. Today, Tesla produces a range of electric vehicles, including the Model S, Model 3, Model X, and Model Y. In addition to its automotive business, Tesla also manufactures solar panels and solar roof tiles, as well as energy storage systems for residential and commercial use.
Tesla has disrupted the automotive industry with its all-electric vehicles, which have gained popularity for their performance, luxury features, and sustainability. The company has also been a leader in developing autonomous driving technology, with its Autopilot system allowing semi-autonomous driving on the highway.