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Tesla stock drops 8% as investors digest new vehicle delays

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Tesla CEO Elon Tesla unveils the Cybertruck, at the TeslaDesign Studio Hawthorne (Calif.). It was during an experiment on glass strength that the cracked window glass happened.

Robert Hanashiro | USA TODAY | Reuters

Tesla shares dropped around 8% on Thursday during early trading, after the company said it would not produce new model vehicles in 2022 — and is not yet working on a hotly anticipated $25,000 electric car.

The CEO Elon MuskShareholders were informed of a fourth-quarter 2021 in the quarter. earningsCall after Wednesday trading, noting that Tesla continues to face chip shortages which are likely to persist throughout the year.

Investors were disappointed that Tesla would not deliver its Sci-Fi-inspired Metal Pickup, Cybertruck (which it revealed in November 2019), and Semi (a heavy-duty truck which it announced Nov. 2017).

Tesla executives stressed instead that the company will concentrate on expanding production at existing factories as well as improving driver-assistance technology. Currently, Tesla is marketed under two brands: Full Self Driving and Standard Autopilot.

Toni M. Sacconaghi Jr., Bernstein’s senior analyst, asked Tesla executives yesterday if it was realistic to expect that Tesla could sell over 3 million cars with just 2 high-volume vehicles and Cybertruck in 2024.

Musk replied smugly, “It is evident from the questions, that the gravity Full Self Driving cannot be fully appreciated.”

Musk explained to us that Tesla’s driverless technology should be so great that it can drive Tesla’s sales to its anticipated high volumes of sales, with or without the addition of new models at lower prices to their lineup.

Tesla cars can still be driven, even though they are equipped with the premium Tesla system. Tesla has classified the systems as Level 2 which means they do not meet the SAE Level 4 standards. This is a classification that indicates if a vehicle can handle all aspects of driving under certain conditions and without human intervention.

Musk stated that Tesla would make a trip to the US without any assistance when it began discussing its self-driving technology ambitions in 2016. That mission has not been completed.

Musk indicated that Musk plans to spend this year on research and development. humanoid robotWork in companies’ plants

Musk claimed that the Optimus Humanoid Robot is our most important product development project this year. Musk said that this robot has more potential than the car business in the future.

Although Tesla stock shares fell on Thursday, analysts were bullish on Tesla and remained focused on its lead in the battery-electric vehicle market. This is a rapidly growing segment within autos.

Deutsche Bank analyst Emmanuel Rosner, for example, wrote that “We believe Tesla’s remarkable target trajectory in battery technology, manufacturing capability, and cost could accelerate the shift to electric cars around the globe and expand Tesla’s EV leadership significantly.” Tesla shares are being held at a target price of $1200 and the firm maintains a Buy rating.

Goldman Sachs’ Mark Delaney reiterated its buy rating with a $1,200 price target in a note Thursday. He noted that company automotive margins reached 29.2% in fourth quarter 2021 and expects to see sales grow by more than 50% this year.

He said that Tesla is still one of the most rapidly growing automotive companies.

Goldman Sachs Analysts sounded cautious, but optimistic about Full Self-Driving Promises.

Management expressed optimism regarding FSD deployments. It believes that software is an important component of the company’s future profitability and value. Although we are not sure how soon the company can reach full autonomy due to the numerous delays in the AV industry, including Tesla, we feel that Tesla will be able to do so quickly given its wide-ranging technology resources and software. “

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