Major US technology and electric vehicle stocks are trading higher on Tuesday, but Tesla Inc. is lagging behind.
(Bloomberg) — Major US technology and electric vehicle stocks are trading higher on Tuesday, but Tesla Inc. is lagging behind.
Shares of the electric-car maker slipped 6.8% after fourth-quarter deliveries fell short of estimates. It’s a sign that investors are increasingly pessimistic on the company, even if they’re willing to return to other tech stocks.
The tech-heavy Nasdaq 100 Index was up 1.4% as of 9:45 a.m. in New York, and bellwethers like Microsoft Corp. and Amazon.com Inc. were in the green.
Another day of declines for Tesla would extend the stock’s 37% plunge in December, the fifth month of losses. The company is facing less demand than expected as it ramps up production capacity and concerns about Chief Executive Officer Elon Musk’s share sales and stretched leadership.
“This year will likely prove to be a difficult one for Tesla due to margin pressures and ever-growing competition, but the EV maker is here to stay and demand will continue to grow,” said Peter Garnry, head of equity strategy at Saxo Bank. “But for now, the Q4 delivery miss will add to investor worries over Tesla.”
Tesla delivered 405,278 vehicles to customers in the last three months, short of the 420,760 average estimate compiled by Bloomberg.
(Updates stock moves throughout and adds comment in paragraph 5.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.