Tesla stock closed down more than 12% on Tuesday as the tech-heavy Nasdaq Composite slipped nearly 4%. Other mega-cap tech stocks like Apple, Amazon, Google and Facebook parent Meta shed more than 3%. Shares of electric-vehicle makers Rivian and Lucid also closed down 9.5% and 8.7%, respectively.
The declines come just a day after Twitter’s board approved Musk’s $44 billion acquisition of the company, showing some of the fall off may be a reflection of investor concerns with the deal. Musk has secured $25.5 billion of fully committed debt, including $12.5 billion in loans against his Tesla stock. The deal also includes $21 billion in equity.
Tesla investors also may be concerned about the possible distractions that could come from owning a platform like Twitter. Musk has appeared to want to heavily influence the company’s operations, which could lead to a time crunch for him. Assuming the deal closes, Musk would be in charge of Tesla, Twitter and SpaceX. He also owns two smaller ventures, the Boring Company and Neuralink.
Automakers, including Tesla, are struggling with the rising costs of raw materials that go into batteries, and a semiconductor chip shortage exacerbated by the Covid restrictions in Shanghai. Tesla said in its first-quarter 2022 earnings report on April 20 that, while automotive revenue was up 87% from the year-earlier period to $16.86 billion, the company lost about a month of “build volume” in Shanghai because of Covid shutdowns.
Tesla generated around $4.65 billion in China in the first quarter of 2022. The Chinese market now accounts for 24.8% of Tesla revenue. Tesla has also been exporting cars from China to the broader Asian and European markets. While it recently opened a new factory in Austin, Texas and another in Brandenburg, Germany, the company is just beginning to increase production in these locations.
“For most vehicles, our delivery wait times are quite long. Those cars delivered in Q1 generally carried pricing set in prior quarters, and at levels lower than cars being ordered today,” CFO Zach Kirkhorn said on the company’s earnings call. “Production is resuming at limited levels, and we’re working to get back to full production as quickly as possible,” he later added.
Tesla doesn’t expect to raise prices again soon, either. Musk said on the same call, “The current prices are for a vehicle delivered in the future, like six to 12 months from now.”
- “Tesla’s plan for Level 5 not feasible, experts say”. Automotive News. July 20, 2020. Retrieved October 30, 2020.
- Tesla Tells California DMV that FSD Is Not Capable of Autonomous Driving”. Car and Driver.
- Guidehouse Insights Names Waymo, Nvidia, Argo AI, and Baidu the Leading Companies Developing Automated Driving Systems (Executive Summary)” (PDF). Guidehouse Insights. Retrieved May 24, 2021.(Registration required)
- NTSB chair calls on Elon Musk to change design of Tesla Autopilot”. TechCrunch. Retrieved November 12, 2017.
- Elon Musk: Tesla is developing a special kind of glass for its Model 3″. Business Insider.
- Wondering if Tesla Can Get There From Here”. The New York Times. Archived from the original on August 26, 2013.
- Tesla announces showroom in Seattle”. The Seattle Times.
- Tesla to reduce on-site staff at Nevada gigafactory by 75%”. TechCrunch. Retrieved February 2, 2021.
- Tesla Starts Off 2016 By Producing & Delivering Powerwall”. CleanTechnica. Retrieved January 6, 2017.
- Worker injuries, 911 calls, housing crisis: Recruiting Tesla exacts a price”. http://www.usatoday.com. Retrieved February 2, 2021.
- New Nevada Tesla Semi Production Line May Build 5 Trucks Per Week”. InsideEVs.
- Solar Roof Tile Production At Tesla’s Buffalo “Gigafactory” Now Up & Running”. Clean Technica.
- Tesla Now Has 1,800 Employees In New York, Panasonic Quits Gigafactory 2 In Buffalo (The Solar One)”. CleanTechnica. Retrieved February 2, 2021.
- Tesla shares soar after crushing third-quarter earnings”. CNBC. Retrieved October 23, 2019.
- “Tesla to Spend $188 Million to Expand Shanghai Factory”. The Street. November 26, 2021. Retrieved December 1, 2021.
- “Tesla opens Giga Berlin factory in Germany”. dw.com. March 22, 2022. Retrieved March 22, 2022.
- Elon Musk personally delivers first made-in Germany Tesla Model Y at Gigafactory Berlin”. electre
- More Remote Working Apps:
https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
https://jvz8.com/c/202927/369164 prime stocks
https://jvz3.com/c/202927/361015 content gorilla
https://jvz8.com/c/202927/366443 stock rush
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz4.com/c/202927/358049 profile mate
https://jvz8.com/c/202927/376524 super backdrop
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376877 forex expert
https://jvz8.com/c/202927/376381 ada leadz
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR