Tesla shares tumbled 12% Thursday, a day after the corporate reported earnings that missed expectations and warned of a slowdown in 2024.

As of mid-afternoon, the inventory was headed for its worst day since a 21% plunge in September 2020.

Tesla reported income and earnings on Wednesday that missed market expectations. Tesla’s automotive income, a carefully watched metric, totaled $21.6 billion within the fourth quarter of 2023, rising simply 1% year-on-year.

However the greatest concern was Tesla’s outlook. The electrical carmaker stated car quantity progress in 2024 “could also be notably decrease” than the speed noticed final yr, as the corporate works towards launching its “next-generation car” in Texas. The corporate cautioned buyers that it is “presently between two main progress waves.”

Buyers betting in opposition to the inventory are having a profitable day. Quick sellers have made greater than $2.2 billion on Tesla since Wednesday’s shut, in keeping with the monetary analytics agency Ortex Media. The inventory is now down 27% for the yr after greater than doubling in 2023.

Tesla delivered 1.8 million automobiles final yr. The corporate has been reducing costs around the globe in key markets throughout Europe and China, because it faces rising competitors from Chinese language gamers like BYD and conventional automakers. The worth cuts have weighed on Tesla’s margin.

Including strain on Tesla’s inventory, numerous brokers lowered their value goal for the corporate, with Barclays reducing its value goal from $250 to $225.

“Not as dangerous as feared, however a cloudy path forward reinforces some draw back danger for now,” Barcalys analysts wrote in a observe on Thursday.

RBC analysts lowered their value goal from $300 to $297. Canaccord Genuity stated in a observe on Wednesday that it has additionally taken down its value goal to $234 from $267.

— CNBC’s Lora Kolodny contributed to this report.

WATCH: Wall Avenue expectations for Tesla this yr are far too excessive