Tesla shares fall 3.65% to close at $181.06 amid reports of German company halting purchases

Dropped to 10th in US Market Cap Rankings
Wall Street Lowers Delivery Volume Forecast for This Year

U.S. electric vehicle company Tesla's stock price fell 3.65% on the 5th (local time), closing at $181.06. This decline is interpreted as being influenced by reports that German software company SAP announced it would stop purchasing Tesla electric vehicles.

According to MarketWatch and major foreign media reports, SAP cited the volatility of Tesla's prices making it difficult to establish purchase plans, as well as Tesla's failure to meet vehicle delivery schedules on time as issues.

[Photo by Yonhap News]

The closing price on this day was the lowest since May 19 of last year ($180.14). Tesla's stock price has fallen 27.12% so far this year up to this day. Accordingly, the market capitalization decreased from $791.41 billion (approximately 1,057 trillion KRW) at the end of last year to about $576.64 billion (approximately 770 trillion KRW) based on the closing price on this day. Tesla dropped to 10th place in market capitalization among U.S.-listed companies.

In addition to signs of weakening electric vehicle demand since the second half of last year, Tesla CEO Elon Musk announced on the 24th of last month during the earnings report that "this year's growth rate will be significantly lower than last year's," and Tesla's stock price has continued to decline since then.

Investment bank Piper Sandler forecasted Tesla's electric vehicle deliveries this year to increase by about 7% from last year to 1.93 million units, lowering the target stock price from $295 to $225. This is a downward revision compared to Wall Street analysts' previous delivery forecast of 2.2 million units.

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