Tesla
and
SpaceX’s
CEO
Elon
Musk
reacts
during
an
in-conversation
event
with
British
Prime
Minister
Rishi
Sunak
in
London
on
Nov.
2,
2023.
Kirsty
Wigglesworth
|
Reuters
Tesla
shares
closed
down
12%
Thursday,
their
biggest
drop
in
over
a
year,
a
day
after
the
company
reported
earnings
that
missed
expectations
and
warned
of
a
slowdown
in
2024.
For
most
of
the
day,
the
stock
was
headed
for
its
steepest
decline
since
2020,
but
narrowly
averted
that
distinction
at
the
close.
Tesla
reported
revenue
and
earnings
on
Wednesday
that
missed
market
expectations.
Tesla’s
automotive
revenue,
a
closely
watched
metric,
totaled
$21.6
billion
in
the
fourth
quarter
of
2023,
rising
just
1%
year-on-year.
But
the
biggest
concern
was
Tesla’s
outlook.
The
electric
carmaker
said
vehicle
volume
growth
in
2024
“may
be
notably
lower”
than
the
rate
observed
last
year,
as
the
company
works
toward
launching
its
“next-generation
vehicle”
in
Texas.
The
company
cautioned
investors
that
it’s
“currently
between
two
major
growth
waves.”
Investors
betting
against
the
stock
are
having
a
lucrative
day.
Short
sellers
made
more
than
$2
billion
on
Tesla
since
Wednesday’s
close,
according
to
the
financial
analytics
firm
Ortex
Media.
The
stock
is
now
down
27%
for
the
year
after
more
than
doubling
in
2023.
Tesla
delivered
1.8
million
cars
last
year.
The
company
has
been
cutting
prices
around
the
world
in
key
markets
across
Europe
and
China,
as
it
faces
rising
competition
from
Chinese
players
like
BYD
and
traditional
automakers.
The
price
cuts
have
weighed
on
Tesla’s
margin.
Adding
pressure
on
Tesla’s
stock,
various
brokers
reduced
their
price
target
for
the
company,
with
Barclays
cutting
its
price
target
from
$250
to
$225.
“Not
as
bad
as
feared,
but
a
cloudy
path
ahead
reinforces
some
downside
risk
for
now,”
Barcalys
analysts
wrote
in
a
note
on
Thursday.
RBC
analysts
lowered
their
price
target
from
$300
to
$297.
Canaccord
Genuity
said
in
a
note
on
Wednesday
that
it
has
also
taken
down
its
price
target
to
$234
from
$267.
—
CNBC’s
Lora
Kolodny
contributed
to
this
report.
Correction:
A
previous
version
of
this
story
incorrectly
stated
that
Tesla
closed
on
its
worst
day
since
2020.
They
narrowly
missed
that
mark.
WATCH:
Wall
Street
expectations
for
Tesla
this
year
are
far
too
high
watch
now
