Poor delivery numbers indicate a downturn for the industry behemoth in electric vehicles. The first half of this year for Wall Street was the worst in decades, and the second half of 2022 doesn’t appear to be shaping out much better either. The Nasdaq Composite (IXIC -0.18 percent) seems certain to resume declining when the market begins trading on Tuesday morning, following a respectable gain on Friday. Nasdaq futures were down nearly 1.5 percent to 11,452 as of 8:30 a.m. ET.
Tesla (TSLA -1.71 percent) continues to draw a lot of investor interest despite having a substantial impact on the Nasdaq bull market between early 2020 and late 2021. Unfavorable news is now over.
Shareholders are not optimistic about the electric vehicle (EV) pioneer’s near future after disappointing news over the weekend reinforced some of the problems it has been experiencing recently. However, early on Tuesday, another significant Nasdaq stock suffered an even worse loss. Here are the reasons for Tesla’s decline and the stock declining even faster.
Tesla is not reliable
In premarket trade, Tesla stock fell by almost 2%, outperforming the Nasdaq. The EV company’s stock price dropped after it released its most recent production and delivery data for the recently finished second quarter of 2022.
Between April and June, Tesla delivered 254,695 vehicles, including more than 238,500 Model 3 and Model Y EVs. Two hundred fifty-eight thousand five hundred eighty units were produced, including almost 242,200 Models.
COVID-19 regulations disrupted the manufacturing at its Gigafactory plant in China, essentially to blame for factory closures. Even though ongoing supply chain difficulties hurt Tesla’s whole production network, the automaker did report that June 2022 saw its most significant month for vehicle production ever.
The stock of Tesla performed exceptionally well in 2020 and for much of 2021, but it has now fallen more than 45 percent from its peak last fall. A recession may not threaten the robust demand for Tesla’s vehicles among devoted customers. However, the company is still faced with a great degree of uncertainty and is still valued highly by conventional criteria, as reported by Fool.