Tesla drops 8% as investors digest new vehicle delays

Tesla drops 8% as investors digest new vehicle delays

Shares dropped more than 8% in Thursday 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. CEO broke the news to shareholders on a 2021 fourth-quarter call after trading on Wednesday, noting that Tesla is still dealing with chip shortages that are expected to linger throughout the year. The announcement dampened investors' hopes that this year would see Tesla begin to deliver on its sci-fi-inspired metal pickup, the Cybertruck, which it unveiled in November 2019, and the Semi, a heavy duty truck, which it announced in November 2017. Executives instead said that Tesla will focus on scaling production at its new and existing factories, and on improving its driver-assistance technology currently marketed as a standard Autopilot option, as well as its premium option brand, Full Self-Driving. Bernstein senior analyst Toni Sacconaghi asked Tesla execs on Wednesday's call, "If there is no $25,000 vehicle being worked on, is it really realistic to think that you can sell more than 3 million vehicles with two very high volume cars and Cybertruck in 2024?" Musk peevishly replied, "I mean, it is apparent from the questions