Tesla Stock Nails Up Again With January Gains

Tesla ( TSLA ) reports fourth-quarter earnings on Wednesday, investors will focus on Elon Musk’s 2023 guidance and goals for the EV giant. Tesla shares fell early Wednesday.


After a horrendous 2022 in which Tesla shares fell sharply in December, the stock has fallen again to start 2023. However, Tesla rallied after announcing big price cuts on Jan. 6 for cars in China. Analysts and investors will be closely watching Wednesday’s results to get a better idea of ​​what Tesla has in store for 2o23.

Tesla shares were down 1% in premarket trading. TSLA shares pared early losses on Tuesday, rising 0.1% to close. Shares rose 7.7% to 143.75 on Monday after rising 4.9% on Friday.

Tesla earnings

Estimates: Analysts expect fourth-quarter earnings to rise 33% to $1.13 per share. At the end of December 2022, analysts predicted EPS of $1.25. Currently, analysts have raised the revenue target to $24.67 billion, a 39% increase.

Earnings: Check back on Wednesday after the market closes.

Tesla has already announced that its deliveries in the fourth quarter hit a record 405,278. It missed downgraded forecasts despite aggressive year-end promotions. Vehicle deliveries were up 31% from a year ago and nearly 18% from 3Q’s 343,830. Deliveries also increased by 40% to 1,313,851 in 2022. This was well below the company’s target of 50% growth.

Analysts had expected Tesla deliveries in the 4th quarter to be around 420,000, significantly below the high estimate. Tesla’s Q3 deliveries were also shortened.

Tesla produced 439,701 units in the fourth quarter, surpassing deliveries by more than 34,000. In the 3rd quarter, product sales increased to just over 22,000. Tesla produced 439,701 units in the fourth quarter, surpassing deliveries by more than 34,000. In the 3rd quarter, product sales increased to just over 22,000.

With increased production at the company’s factories in Berlin and Austin, Texas, Tesla’s total production capacity now exceeds 450,000 per quarter.

Tesla expects unit sales to reach 1,313,851 for 2022, up 40% from 2021 but below the 50% target. The Model 3 sedan and the Model Y crossover accounted for the vast majority of sales. The rest were high-end Model S and X cars.

Meanwhile, the Cybertruck is scheduled to arrive in 2023, making it Tesla’s first new model since the Model Y went on sale in early 2020. The oft-delayed truck will go into “early production” in the middle of the year, according to Musk. According to other reports, the Cybertruck will begin mass production at the end of 2023.

Tesla also started delivering long-haul Semi trucks here PepsiCo (PEP) in December. It is not clear how many Semi trucks will be produced in 2023, and the basic prices and specifications are still unknown. According to the Nevada Independent, Tesla plans to build a $3.5 billion manufacturing facility for Semi trucks in Northern Nevada.

Tesla Shareholders: Earnings come after price cuts

Tesla’s fourth-quarter earnings follow Tesla China EV registrations, which rose in the Jan. 5-16 week after recent big price cuts. The latest registration numbers reflect some of the benefits from Tesla’s Jan. 6 decision to cut prices in China.

Tesla has cut prices for the Model 3 and Y in China, with the base Model 3 dropping more than 13% to $33,570. According to CnEVPost, local media in China suggested that Tesla received 30,000 orders in the three days after the cuts were announced.

Tesla also announced price cuts in the US and Europe. This will make most models eligible for up to $7,500 in tax credits under the Inflationary Reduction Act (IRA).

The electric giant has cut US Model 3 prices by 6-14%, depending on the design. The standard trim Model 3 RWD has been reduced by $3,000 to $43,990. With the IRA tax credit applied to the car, consumers who meet the income limits will pay $36,240.

The Performance Model 3 trim has been reduced by $9,000 to $53,990, falling below the $55,000 limit for tax credits. Meanwhile, Tesla’s base Model Y is down $13,000, or about 20%, to $52,990, below the tax credit limit. The Performance variant for this car has been reduced by $13,000 to $56,990.

Tesla shares

TSLA shares rebounded on Friday and Monday after two sessions of losses. Shares of Tesla traded lower on Tuesday afternoon, resisting the stock’s 10-week moving average.

Tesla shares are now up 16% since hitting a low of 101.81 on January 6. A number of analysts have also cut their price targets on Tesla shares.

TSLA shares rank third in the Auto Manufacturers industry group. Tesla stock has a Composite Rating of 42 out of 99. The stock has a Relative Strength Rating of 5, an exclusive IBD Stock Check measure of share price action. The EPS rating is 75.

Follow Kit Norton on Twitter @KitNorton for more coverage.


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