Stock Market Update: Why Tesla’s Record Deliveries Aren’t Boosting Its Stock Amid Subsidy-Driven Demand

Tesla Inc closed at $436.00, down 5.11%. It traded 135 million shares, double its average volume over the past three months. Meanwhile, the broader market saw gains. The S&P 500 rose by 0.062% to 6,715.35, and the Nasdaq Composite increased by 0.39%, buoyed by tech stocks.

In the electric vehicle market, Rivian Automotive Inc slid 7.39% to $13.53, while NIO Inc saw a 3.20% increase, reaching $7.89.

Despite Tesla reporting record deliveries of around 497,099 vehicles, its stock fell. This surge was largely due to customers wanting to take advantage of the $7,500 tax credit before it expired. However, as lease prices have risen since the credit’s end, investors are worried about future demand. Analysts will closely watch Tesla’s fourth-quarter delivery guidance and margin trends. These factors will indicate if the recent spike in sales was a one-off boost or a sign of ongoing demand.

Interestingly, a recent survey revealed that 70% of consumers are considering electric vehicles due to rising gas prices and environmental concerns. This suggests that the demand for electric cars, including Tesla’s models, might still be strong despite the recent price shifts.

Furthermore, historical trends show that the electric vehicle market is growing rapidly. In 2020, electric vehicle sales accounted for just 2% of global car sales. By 2023, that number climbed to nearly 10%, indicating a strong shift towards sustainable transportation.

Stay informed about market trends to understand better how these shifts might impact investments in electric vehicles.

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