American electric car manufacturer Tesla is experiencing financial difficulties, including due to violations in the supply chain, said the head of the company, Ilon Musk. Tesla shares have been actively dropping in value since at least the end of this summer - what awaits them next, experts say.

Tsla premarket - what happens to the company and how this affects the value of its shares?

According to Musk, Tesla is currently experiencing quite serious production problems. He noted that the company is only managing to cope with supply chain disruptions with great difficulty.

And they seriously affected Tesla's revenues back at the beginning of the summer. This had a significant impact on Tesla after hours stock price. At the time, Musk estimated the loss at one billion dollars. Basically, the company lacked batteries for electric cars and tools for the production of batteries. As a result, this year the company abandoned plans to bring to market new models of cars. To overcome the current difficulties, Musk, as he himself stated, has to work from morning till night, seven days a week.

Weak Report

Production problems have already had a negative impact on Tesla's results for the third quarter of 2022. In particular, they have not had the best effect on the company's sales. Tesla said that their decline was due to the disruption of the supply chain at the end of the quarter. Note that Meta stock price yesterday is also having serious problems amid inflated expectations from Metaverse prospects. 

Since the beginning of the year, Tesla delivered about 908 thousand electric cars on the market, which almost corresponds to the levels of the whole year 2021. At the same time, earlier, Tesla planned that deliveries in 2022 would increase by 50% compared to last year; that is, up to about 1.4 million cars.

But there is not much time left to achieve the targets. It is unlikely that Tesla will be able to fulfill these ambitious plans in the current economic realities, experts say. Moreover, the company has to raise prices for its products, which reduces demand and, accordingly, reduces sales. Read more news at letizo.com. 

Shares get cheaper

Amid all the difficulties experienced by the company, its shares have recently been actively declining in value. We can observe the same with Facebook stock price history. Thus, since the beginning of the fall of this year, they have already fallen by more than 40%. A particularly significant decline was recorded just after the publication of Tesla's report for the III quarter. Now the company's securities are worth only a little over $190.

In the near term, it is unlikely that growth in quotations will resume. As the global economy enters a recession, automakers are also feeling all the negative effects of this crisis. Tesla shares will fall in price by as much as $170, experts concluded.