Tesla Drops Most Since 2020 After Third Straight Delivery Miss

(Bloomberg) -- Tesla Inc. shares fell more than 14% after the electric carmaker delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest markets.

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The company said Monday it handed over 405,278 vehicles to customers in the last three months, short of the 420,760 average estimate compiled by Bloomberg. While the total was a quarterly record for Tesla, the company opened two new assembly plants last year and still came up short of its goal to expand by 50%.

It’s also the third straight quarter that deliveries have missed estimates. Several analysts cut price targets on the stock Tuesday, resulting in Tesla’s lowest average 12-month stock forecast since October 2021. And JPMorgan Chase & Co. said Tesla might never again reach its multi-year 50% growth sales objective.

“Our base case assumption is that year-on-year growth (while remaining impressive overall) is likely to decline each year from here on out,” analyst Ryan Brinkman, who has the equivalent of a sell rating on the shares, wrote in a research note.

Tesla’s double-digit decline to $105.60 just before 12:00 p.m. in New York — the steepest drop since September 2020 — comes on the heels of a dismal 2022 for the stock. In December, its shares plunged 37% and closed out the year with a record 65% tumble.

After Chief Executive Officer Elon Musk predicted an “epic” end to the year, Tesla cut vehicle prices and production in China, then offered $7,500 discounts in the US. Concerns about rising interest rates, inflation and other economic headwinds — plus alarm over Musk’s antics on Twitter, which he now owns — sent Tesla shares plunging 37% in December and 65% last year.