Elon Musk, the CEO of Tesla, advised staff to pay no mind amid "stock market craziness" after the company's shares dropped over 70% this year due to concerns about waning interest in electric vehicles and Musk's recent ownership of Twitter.
Musk claims that Tesla will eventually be the most valuable firm on the planet in an email to colleagues that was sent on Wednesday and examined by Reuters.
(Photo : CARINA JOHANSEN/NTB/AFP via Getty Images)
Tesla CEO Elon Musk looks up as he addresses guests at the Offshore Northern Seas 2022 (ONS) meeting in Stavanger, Norway on August 29, 2022.
Additionally, he asked staff to increase deliveries at the end of this quarter after the company provided discounts on its automobiles in China and the US.
According to Refinitiv statistics, analysts anticipate the EV giant to deliver 442,452 vehicles in the fourth quarter.
The value of the shares held by Tesla's employees has decreased as a result of the company's falling stock price. For the majority of employees, Tesla has provided stock compensation.
According to an internal timetable obtained by Reuters, Tesla plans to carry over the decreased output it began this month into 2023 by maintaining a constrained production schedule at its factory in Shanghai.
Tesla Limits Operations
According to the production schedule, Tesla will produce electric cars for 17 days in January, from Jan. 3 to Jan. 19, before ceasing production for a longer holiday to celebrate the Chinese New Year on Jan. 20 to Jan. 31.
In its output prediction, Tesla did not offer an explanation for the production slowdown. Additionally, it wasn't clear if manufacturing activities would continue while the Model 3 and Model Y production lines were shut down.
In premarket trade, Tesla stock was down 5.8% at $116 per share. Investors' worries regarding demand, notably that from China, as well as Elon Musk's recent Tesla share sales and his activity on Twitter have contributed to the stock's 56% loss in value since the beginning of October.
Tesla also stopped production at its Shanghai factory on Saturday, deviating from a plan to shut down a large portion of operations at the facility in the final week of December, according to Reuters.
A rise in infections as a result of China's move to suspend its zero-COVID policy earlier this month corresponded with Tesla's most recent manufacturing reductions in Shanghai.
In China, the world's largest market for automobiles, Tesla has experienced a decline in demand, similar to other automakers.
In addition to an insurance subsidy, the EV giant has lowered the price of the Model 3 and Model Y in China by up to 9%.
Tesla's average daily retail sales in China from December 1 through December 25 fell 28% from the past year, according to research published on by the brokerage China Merchants Bank International (CMBI).
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