NASDAQ: TSLA
Key Data Points
Tesla (TSLA 2.56%), the electric vehicle manufacturer, closed down 1.2% at $454.24 on Tuesday, as investors reacted to cautious delivery commentary and supply chain concerns. Tesla IPO'd in 2010 and has grown 28,500% since going public. Trading volume reached 58 million shares, which is very close to its three-month average.
Tuesday’s catalysts centered on Tesla’s company-compiled Q4 delivery consensus, analyst downgrades, and reports of a scaled-back battery deal.
How the markets moved today
The S&P 500 (^GSPC 1.27%) slipped 0.13% to 6,896, while the Nasdaq Composite (^IXIC 1.50%) fell 0.24% to 23,419. Among industry peers, Ford Motor Company (F 0.21%) and General Motors (GM 2.06%) fell 0.3% and 0.7%, respectively, as investors weighed shifting EV strategies and broader uncertainty across the sector.
What this means for investors
On Tuesday morning, Tesla provided guidance that it would deliver 422,850 vehicles in the fourth quarter. This was well shy of a recent survey's analyst average of 445,000 and represents a 15% decline from Q4 2024. This prompted a downgrade to equal-weight by one prominent Wall Street firm, helping spur today's decline.
The underwhelming figures come just one day after a key supplier erased the majority of a massive EV battery deal with Tesla, sparking concerns that its Cybertruck sales may continue to disappoint. Trading with a market cap of $1.5 trillion -- and at a lofty 17 times sales -- Tesla may need to stick the landing on its pivot to autonomous vehicles, AI, and robotics, to live up to its hefty valuation.
