Tesla's share price plummeted 12%, wiping out about $47.7 billion in market capitalization.

On January 4, Beijing time, Tesla's shares closed down 12% on Tuesday. The announcement comes just a day after the company reported fourth-quarter car production and delivery that fell short of analysts' expectations and failed to meet internal growth targets.

▲ Tesla's annual delivery fell short of expectations as of Tuesday's close, Tesla shares fell $15.08, or 12.24%, to $108.10, wiping out about $47.7 billion (329.9 billion yuan) in market value, leaving $341.4 billion. Tesla's market capitalization once exceeded 1 trillion US dollars.

The share price of ▲ Tesla fell 12%. Tesla released data on Monday that the company produced a total of 439701 cars and delivered 405278 vehicles in the fourth quarter, falling short of the average analyst estimate of 420760. It produced a total of 1.37 million cars and delivered 1.31 million vehicles for the whole year, up 40% from 936000 in 2021 and failing to meet its target of 50 per cent annual delivery.

Tesla is facing a serious demand problem, Bernstein analyst Tony Sacconaghi said in a research report on Monday. "Tesla's annual order turnover rate, including significant discounts, was only about 1 million vehicles in the fourth quarter, while the company aims to sell nearly 2 million vehicles by 2023. We expect the demand challenge to persist in 2023." Sacconaghi said. He pointed out that apart from the seven-seat version of Model Y, no Tesla model is currently eligible for a tax rebate under the inflation reduction Act.