Tesla Stock Rallies on Optimistic Outlook
EV car maker’s shares are on track for their largest increase since mid-2022!
Recent price cuts have helped lift investor sentiment on Tesla.
Tweet on Tesla’s record profit on the last Q3 2022
Tesla posted a record profit of nearly $3.7 billion and sales of $24.3 billion for the final three months of 2022!
Shares of @tesla are on a roll today#Tesla #TeslaEarnings pic.twitter.com/kcsE5M9BOG— The_Journalbiz (@the_journalbiz) January 26, 2023
Bloomberg chart on Tesla earnings
Tesla Inc. shares rallied after Elon Musk struck an upbeat tone about the demand for the company’s vehicles and its ability to navigate a potential economic downturn.
Shares leaped more than 8% to $156.72 in Thursday morning trading and are up 27% year to date. The stock is bouncing back after suffering its worst performance ever last year and is on pace for its largest percentage increase since July 2022. It currently is the second-best performer in the S&P 500.
“Thus far, in January, we’ve seen the strongest orders year-to-date than ever in our history,” Mr. Musk said on a call with investors after the Wednesday market close. “We are currently seeing orders that are almost twice the rate of production.”
The EV maker’s poor stock performance in 2022 came as interest rates rose, competition grew and its brand popularity diminished. But recent price cuts for certain vehicles coupled with mixed results in the fourth quarter helped lift investor sentiment.
Tesla posted a profit of nearly $3.7 billion and sales of $24.3 billion for the final three months of 2022. Both figures, while growing, came in below analysts’ estimates.
- Tesla said it planned on 1.8 million vehicles for the year without specifying whether that was a production or a delivery target.
A delivery target of 1.8 million would mark 37% growth from 2022 and come in below Wall Street’s expectations; the company has been aiming to increase vehicle deliveries by an average of 50% annually.
Still, the Inflation Reduction Act and boosted production at the company’s Berlin and Texas sites are expected to help Tesla’s margins, analysts said.
