Tesla's stock price plunged 9.75% after the decline in profits, resulting in a market capitalization loss of nearly $55.8 billion.
CTOnews.com, April 21 (Xinhua)-- Tesla's shares closed down nearly 10% on Thursday, wiping nearly $55.8 billion off its market capitalization after reporting first-quarter results in which net profit fell more than 20%.
In the early hours of yesterday morning, Tesla reported results for the first quarter of fiscal 2023 ended March 31, with net profit attributable to Tesla's common shareholders of $2.513 billion (CTOnews.com Note: about RMB 17.315 billion), down 24 per cent from $3.318 billion a year earlier. Earnings per share were $0.73, down 23% from a year earlier.
In addition, Tesla CEO Elon Musk also said that the company is willing to lower profit margins in exchange for higher sales, a statement caused concern among analysts.
"given Tesla's long-term brand risk, we are cautious about price cuts," Wells Fargo wrote in a report on Thursday. " Wells Fargo also cut Tesla's share price target to $170 from $190.
By Thursday's close, Tesla shares were down $17.60, or 9.75%, at $162.99, losing $55.792 billion (currently about 384.407 billion yuan) to $516.6 billion.
