London CNN —Shares in Tesla plunged as much as 11% after the market opened Thursday, wiping $73 billion off the company’s market value hours after it warned of slowing growth in electric car sales and an existential threat from Chinese rivals.
While it reported a sizeable 38% increase in deliveries last year compared with 2022, Tesla had previously targeted a 50% annual growth rate averaged over several years.
At the time, investors were worried about the outlook for Tesla’s sales and profitability, as well as the health of the US economy.
Dan Ives, an analyst with market research firm Wedbush, said Tesla’s earnings call provided investors with “minimal answers” to the company’s shrinking margins.
China’s BYD beat Tesla in the final three months of last year, selling more cars than Elon Musk’s carmaker for the first time.
Persons:
Tesla, Thursday’s, Qilai Shen, Dan Ives, Musk, ”, China Tesla, China’s, Elon Musk’s carmaker, ” Garrett Nelson, Ben Barringer, Chris Isidore
Organizations:
London CNN —, Bloomberg, Getty, Elon, CFRA Research
Locations:
Shanghai, China, Cheviot