Al Root
Tesla stock fell early Tuesday as investors weighed news out of Delaware and China -- and considered taking some profits.
Shares of the electric-vehicle maker were down 0.7% at $354.70 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were little changed.
Shares fell late Monday after Delaware Chancery Court judge Kathaleen McCormick rejected CEO Elon Musk's pay package for a second time.
McCormick rejected the pay package awarding Musk some 300 million options in January, citing inadequate shareholder disclosures. Tesla put the package up with new disclosures for a second vote in 2024. Shareholders approved it again, but that didn't matter in the end.
Wedbush analyst Dan Ives called it a "Twilight Zone situation," adding he expects Musk will ultimately get his money. Tesla can appeal the decision.
There was also news for Tesla investors out of China. In November, Tesla shipped about 79,000 vehicles, including exports, from its Chinese plant in Shanghai, according to industry data providers, down about 4% year over year. Tesla has shipped about 147,000 cars from Shanghai in October and November combined, down about 5% year over year.
Falling shipments mean Tesla needs a big December to hit delivery goals. The company wants to sell at least 515,000 cars globally in the fourth quarter to ensure growth in 2024 compared with 2023. China accounted for about 40% of Tesla sales in the third quarter.
Tesla, of course, has other plants, but getting to 515,000, which would be a record, looks difficult. Wall Street projects fourth-quarter sales of 503,000 vehicles. That would leave 2024 shipments down less than 1% year over year.
Either news item adds a little uncertainty for investors and could send Tesla stock down some. There is also the potential for profit-taking.
Coming into Tuesday trading, Tesla stock was up 42% since the Nov. 5 election. Shares closed at $357.09 on Monday, a new 52-week high and the highest close since April 2022.
No one could be blamed for trimming a position after a run like that.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 03, 2024 07:50 ET (12:50 GMT)
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