Tesla logo is displayed on the hood of a Tesla car
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Tesla slumps after releasing earnings
Tesla sinks after supply chain warning, hitting other EV makers

Tesla earnings fail to boost the stock, but analysts are raving about one  metric in the results
Image: CNBC

Shares of Tesla Inc (TSLA.O) slid on Thursday, dragging down rivals after the leading electric car maker delayed releasing new vehicles until next year because of supply chain disruptions it said could last through this year.

The share price of Tesla, trading with the ticker TSLA, had slid by 167 points on the NASDAQ over the last five days as of Friday morning (January 28), with Tesla stock trading down by 16.79% at the start of the week.

The automaker, headquartered in Austin, Texas, reported fourth-quarter earnings of $2.88 billion, or $2.54 a share, excluding some items, on strong sales of its mass-market models. That was above analysts’ estimates of $2.36 a share and a record.

Revenue grew 65% to $17.7 billion, compared with estimates of $16.6 billion, the company said Wednesday.

“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” Tesla said.

Chief Executive Elon Musk told a quarterly conference call that Tesla would not launch new models like Cybertruck this year because it would dent volume growth in the face of supply chain headwinds that would be alleviated only next year.

He said Tesla would focus on ramping up the volume of existing models in 2022 by more than 50% rather than launching new ones. The warning bodes ill for legacy automakers and startups, which have promised new electric vehicle (EV) models in the coming months.

In response to one investor who asked about progress on plans for a more affordable Tesla vehicle, Musk elaborated: “Well, we’re not currently working on a $25,000 car.

“At some point, we will, but we have enough on our plate right now, too much on our plate, frankly. So, at some point, there will be.”

Other EV Stocks

“Tesla is even having trouble. Other EV firms are not going to be able to produce these vehicles as fast as they want,” said Curzio Research CEO Frank Curzio, adding that the volume growth of many new models could be pushed into 2023.

Shares of other EV makers also fell, outpacing the Nasdaq’s (.IXIC) slide. Rivian Automotive Inc (RIVN.O) dropped 9% and was on track to close at its lowest since the EV pickup truck maker’s market debut in November.

The rout in LCID share price extended into the third consecutive day, as bears eroded 144.10% of its value on Thursday. The Lucid stock price hit its lowest in three months at $28.39 before recovering $28.70 at the close.

Analysts see Rivian losing a whopping $5.2 billion in 2022 as it ramps up production. Rivian’s stock plunged 10.7% in Thursday’s trading in sympathy.