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In yesterday’s tech rout on Wall Street, Tesla shares slumped 12%, the latest sell-off after a bad year for the electric carmaker’s share price.
Apple shares fell 3.7%, and its market value dropped to $1.99bn. Its value declined by a staggering $1tn over 2022, with investors worrying about disruption to its China-based factories.
On Wall Street stocks started the year on a downbeat note, with Tesla and Apple leading the pack downwards amid worries that sales will take a hit as consumer wariness rises during the downturn. The minutes of the latest Federal Reserve meeting will be devoured later, in a search for clues about how much higher rates will go, before policymakers consider pressing the pause button.
Tesla’s stock price plunged another 12% and continued its year-long sell-off that took place in 2022. Of course, the primary reason behind the fresh sell-off was its car delivery numbers which were much softer than the market expectations. Wall Street was expecting the number to be near the 427K mark for the fourth quarter of the last year when the company reported 405,278K. If you look at the numbers, the difference isn’t ocean’s apart. The softness in the numbers can be blamed to a number of factors, such as higher inflation which has made consumers wary about their spending. Higher interest rates is another factor that consumers are mindful of before committing to a monthly payment.
Smart money believes that most of the bad news for Tesla is already priced in, such as the shaky deal that Elon Musk announced about buying Twitter for $44bn, which made him to sell a large portion of his stock in Tesla. In addition, Elon has been distracted or less focused on the company’s core product due to the stress of taking another company under his wing. Allocation of sources from Tesla to Twitter and the process of finding an appropriate CEO for Twitter.
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