Tesla’s stock price crashes, down -9% on missing 4Q2022 consensus

By:
on Jan 3, 2023
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  • Tesla's stock drops by more than -9% on missing quarterly deliveries expectations
  • The stock is on its way to $100/share
  • Not everyone is bearish on Tesla

One of the biggest events this week in the US equity market was Tesla’s 4Q2022 deliveries. After sliding for most of December, the stock price bounced from $100/share in expectations of the report released today.

As it turned out, Tesla deliveries in the 4Q22 were up by 31% YoY to about 405k – great news. However, it was short of consensus, which triggered a small crash in the stock price at today’s opening.

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Tesla delivered 405k vehicles while producing 439k. The bulk of the deliveries were Model 3/Y and Model S/X, with 388,131, respectively 17,147 cars.

At the time of writing this article, Tesla’s (NASDAQ:TSLA) stock price is down by -9.22%, trading at $111.48. To put things into perspective, one should remember that the stock traded at $400/share one year ago.

Tesla’s stock price eyes $100/share

At the start of 2022, Tesla’s stock traded at around $400/share. But the buying frenzy quickly ended as the tech stocks were sold aggressively last year, and Elon Musk bought Twitter.

He needed cash to fund the buying of Twitter and sold Tesla shares. As a result, the stock price declined, especially in the second half of the year, and now trades close to $100/share. Given today’s deliveries report, it seems that $100/share is just around the corner.

ARK remains bullish Tesla, Goldman lowers price target

Not everyone is bearish on Tesla. ARK Invest, an asset management company founded by Cathie Wood in 2014, remains bullish. According to ARK, the bull case for Tesla has 17 million cars sold by 2026, translating into a stock price of $1,533/share.

On the flip side, after the latest deliveries report, Goldman Sachs just lowered its price target for Tesla’s stock price. It now targets $205/share instead of $235/share – still higher than where the stock trades today.