Tesla's shares listed on the Nasdaq plunged nearly 12 percent on Tuesday, a day after the electric vehicle manufacturer announced that its fourth-quarter vehicle sales and 2022 delivery figures fell short of analysts’ expectations and the company's stated goals. This decline in Tesla's stock erased approximately $9 billion (equivalent to 6.6 percent) from Elon Musk’s wealth in a single day, bringing his net worth to $128 billion, according to the Bloomberg Billionaires Index. Musk's wealth, as the CEO of Tesla, SpaceX, and Twitter, had peaked at $340 billion in November 2021 but has been steadily decreasing over the past year as Tesla’s shares dropped by over 65 percent.
The company reported selling about 1.3 million electric vehicles in 2022, a record high representing a 40 percent increase compared to the previous year; however, this was below the expectations set by the company itself and Wall Street. Musk’s company had set a goal for long-term annual sales growth of 50 percent. In October, the company’s CFO indicated the possibility of not meeting this target this year. Analysts also expected better results, anticipating Tesla to deliver 427,000 vehicles in the fourth quarter of 2022, according to FactSet estimates. However, the group only delivered 405,000 cars.
To stimulate sales, Tesla offered unusual promotions to customers who purchased a new vehicle before the end of December. In an email sent last week, Elon Musk urged company employees to volunteer to deliver as many cars as possible before the end of 2022. Observers fear a potential slowdown in demand for Tesla's high-priced vehicles, amid uncertainty surrounding the economic environment and increasing competition from other companies offering their own electric vehicle models. They are also concerned about Elon Musk’s increased focus on his new company, Twitter, at the expense of Tesla.
