Tesla’s shares plummeted on the New York stock market on Thursday, with investors unhappy with the results of the electric car manufacturer, announced the previous day after the market closed.
On Wednesday evening, Tesla had reported earnings per share of 71 cents, less than the 73 cents Wall Street had been looking for. Moreover Tesla management said automotive sales growth in 2024 would be substantially below 2023.
Following the announcements, Tesla's shares dropped a hefty 12.1% in New York on Thursday.
The company has not revealed how many cars it expects to deliver this year. Last year’s figure was 1.8 million vehicles, a 38% increase on the previous year. Tesla's management predicts a significant decrease in volume growth for 2024.
Additionally, quarterly revenue increased by 3% to just over $25 billion, marking its slowest rate of growth in over three years.
US government figures reflecting the country’s economy were also released on Thursday. These showed that the world’s largest economy grew by 2.5% in 2023, driven mainly by increased consumer spending and a resilient labour market. Last year saw fewer layoffs and increased wages.
The Dow Jones index ended the trading day on Wall Street up 0.6%, closing at 38,049.13 points. The broad S&P 500 climbed 0.5% to 4,897.16, while Nasdaq advanced by 0.2% to 15,510.50.
In contrast to Tesla, IBM’s results were well received. The US technology corporation saw a higher-than-expected increase in revenue and profits last quarter, and anticipates positive results for this year. IBM’s shares consequently rose by 9.5%.
Boeing faced a 5.7% loss. The US Federal Aviation Administration has prohibited the aircraft manufacturer from expanding production of its best-selling 737 MAX aircraft. The 737 MAX 9 came under scrutiny after an emergency landing was necessary due to a loose door panel. The FAA has now approved an inspection form, allowing the 171 grounded MAX 9 planes to fly again.
Microsoft saw a rise of 0.6%, taking the tech company’s market value to $3 trillion for the first time.
The euro was valued at $1.0840 at the close of the European markets, compared to $1.0835 previously.
A barrel of US oil cost $77.22, up by 2.8%. Brent crude oil rose 2.9%, costing $82.37.
