Shares of Tesla (TSLA) were rocked for 7% losses on relatively heavy volume as the company announced its latest delivery figures. The report disappointed investors on two fronts.
First, Tesla’s deliveries for the fourth quarter of 2024 came in at 495,570 vehicles. That number was lower than analysts expectations of 504,770 vehicles.
Annually, Telsa delivered 1,789,226 vehicles, a number that also came in lower than what analysts were looking for, but there’s a larger problem for investors.
The delivery results for the quarter represented the first annual drop in delivery numbers for Tesla, which reported 1.81 million deliveries in 2023.
The delivery numbers came at a poor time for Tesla shares after the stock has posted returns of almost 100% since the November elections. Investors have heavily speculated that Elon Musk’s relationship with the President-elect would benefit Tesla’s robotaxi program.
Tesla’s strong rally has also put the stock at the top of many trader’s lists for profit-taking as we head into the new year.
That short-term profit-taking is likely to add to the stock’s selling pressure in early January as Tesla’s quarterly earnings approach on January 22.
Today’s selling also conjures memories of last year’s price activity in January.
Tesla shares posted a strong 30% rally into the end of 2023, posting their highs of $265 just days ahead of the end of the year. Those highs were quickly erased as Tesla’s year-end delivery results caused the stock to break below its 20-day moving average.
The stock plunged another 15% following Tesla’s fourth quarter results which were delivered on January 24, 2024.
Today’s move in Tesla is a reminder that investors have very long memories, which is one reasons that stocks tend to follow very recognizable patterns.
Despite the weak start to the year, Tesla shares do remain in a long-term bullish trend.
The stock crossed above its 20-month moving average in July 2024, after falling into a bear market trend in January 2024.
The stock is unlikely to repeat that performance as the company is moving forward with low-dollar models and its robotaxi program.
That said, investors should expect Tesla shares to remain volatile through the month of January.
Investors looking to buy a dip on Tesla shares should maintain an eye on the $300 price level, a full 20% decline from today’s prices.
