Tesla, the major player in the electric vehicle market announced that it delivered a record 1.3 million vehicles last year, which was 40% higher than in 2021. Even though these figures are impressive, they still fell short of Wall Street sales forecasts for the year’s final months.
As a result of these sales and delivery figures, Tesla’s shares dropped by more than 12% on Tuesday after the announcement.
In a statement to investors, it was announced that Tesla has to deal with “significant Covid and supply chain related challenges throughout the year”.
On top of this, earlier on Tuesday authorities in South Korea said they were in the process of imposing a $2.2m (£1.8m) for failing to tell its customers about the shorter driving range of its electric vehicles in low temperatures.
An announcement was made by the Korea Fair Trade Commission, stating that the company had exaggerated the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers”.
Slide in share price by 65%
This is bad news for Elon Musk and Tesla, a 65% drop in share price equates to a massive $50bn (£41bn) off Tesla’s market value. This is enormous and has long been seen as another indicator of how possibly overpriced Tesla’s market value is compared to the likes of Ford and General Motors, who manufacture more vehicles.
The plunge in share price in 2022 has been the worst year since Tesla went public in 2010. The main factor for this has been Elon Musk’s head being turned by the acquisition and taking control of Twitter, the current slowdown in demand, and the disruptions to production caused by Covid and the war in Ukraine.
Tesla is currently facing unprecedented competition from traditional motor manufacturers such as GM and Ford, as well as newcomers to the market, such as US-based Rivian and Lucid, plus China’s BYD and Nio.
However, Tesla is still regarded as the world’s most valued car manufacturer, even though in the fourth quarter of the year 2022 were about 34,000 fewer than Tesla produced. This shortfall is highly unusual for Tesla, as it had previously managed to deliver roughly the same number of vehicles it produces.
The company will be announcing financial results for the fourth quarter of 2022 and the whole year on the 25th of January 2023.
Cheaper and wiser to go for a used car
Looking at the current market and the rise in used car prices, it’s not a bad idea to start considering a few options when it comes to purchasing a newer used car. It’s all well and good to get a bargain by buying privately but consider there’s always a risk, especially when it comes to warranty and other possible drawbacks. At WOO Carz, based in Southampton, Hampshire, all the used cars in stock, are fully inspected and all come with a full warranty. Not only that, all WOO Carz are HPI checked and are serviced before being delivered free of charge to our customers’ homes or places of work, and that’s anywhere within the United Kingdom.
And because WOO Carz is a well-established family business, we offer a full range of financial terms with people of all types of credit histories or credit statuses. So not only do WOO Carz have a highly impressive portfolio of quality used electric cars, used hybrids, used SUVs, used MPVs, and all types of used cars, we offer exclusive deals that make it more affordable for our customers to buy from us with full confidence that it’s within their budget.
Even if you have a car already and with outstanding finance, WOO Carz will consider all options in order to get you into a newer quality used car.
To find out more about WOO Carz’s current deals and outstanding offers, call now on 02380 225 666, or to get a decision on car finance within an hour, click here and see if you can get car finance approval today.
WOO Carz is authorised and regulated by the FCA to provide finance on all the used cars we stock and source. We work with a number of carefully selected credit providers who specialise in providing car finance to people with high or low credit scores.