Elon Musk's Tesla stocks has plummeted 65% last year as a result of his $44 billion purchase of Twitter, falling short of its production and delivery growth goal for 2022. Elon Musk rose to the position of the world's wealthiest individual last year, holding it until nearly the middle of December. However, Bernard Arnault has now overtaken him. Despite the fact that his net worth reached new heights in 2022, it also dropped. Tesla had to sell 495,760 automobiles in the final quarter in order to meet the predicted 50 percent steady rise. Tesla manufactured 439,000 vehicles and delivered 405,000 vehicles in the final quarter. Prior to Tesla surpassing its goal of reaching production and deliveries by 50% in 2022, Tesla stocks plummeted by approximately 65%.
Vehicle deliveries increased by 40% whereas production increased by 47% in 2022. Musk's diversion with his Twitter makeover is the reason for the inability to reach the production targets. The firm said at a recent summit that it was moving toward a more balanced regional balance of vehicle manufacturing, which formerly caused a rise in the number of vehicles in transit at the close of the quarter.
Investors are concerned that the issues with the supply network and the China Covid scenario will have a negative impact on Tesla sales in near future. They are also worried about Musk's Twitter diversion. From this scenario, the CEO of Tesla is the first person to experience his total wealth drop by $200 billion. Following his $44 billion purchase of Twitter, his wealth continued to decline. In an effort to sell more cars, Tesla recently declared a price cut for a range of its models, including the Model 3 and Model Y, providing a $7,500 discount.
These risks have made investors rethink Tesla's potential from the ground up in a faltering economy. It continues to be the most lucrative manufacturer and the sole significant automaker that is regarded as a growth stock. Investors, however, are really no more persuaded that Tesla can command the automobile sector in a similar manner that Apple leads the smartphone market and that Amazon regulates online retail.
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