Tesla Share Price: What to expect after results?
Key points:
- Tesla expects to deliver 1.8 million vehicles in 2023, highest on record
- Tesla reported a 59% year-on-year jump in Q4 net profit
- Tesla's steep discounts pushed sales higher, but hurt margins
Tesla share prices jumped 11% on Thursday, which was its best daily performance since January 2022! Click here for a detailed view on Tesla’s share performance.
Most EV makers are in the spotlight as investors expect falling demand as recession fears rise across the globe. Tesla had recently announced heavy price cuts on certain vehicle models to tackle this falling demand. These price cuts have acted as a boon for the EV maker which recorded robust sales this quarter.
The company slightly beat revenue targets for the quarter ended December and it sought to reassure investors that it can cut costs to cope with recession and as competition intensifies in the year ahead.
Shares also got a fillip from CEO Elon Musk’s projection for the company’s 2023 sales which according to Musk is set to hit 1.8 million.
Tesla Results: Share price performance
Tesla Results: Key Highlights
- Tesla reported its highest ever quarterly revenue and net income in history. The company reported a 37% year-on-year rise in revenue to $24.3 billion.
- Tesla is focusing on cost reduction strategies to offset macro-economic risks and also planning to push for higher car productions.
- Reported a profit of $3.6 billion, a 59% year-on-year jump.
- During the quarter, each of Tesla’s vehicle factories produced a record number of vehicles.
Tesla Results: Deepdive into Vehicle Deliveries
Tesla’s vehicle deliveries have been on the rise consistently over the past couple of years, which Tesla plans to continue to deliver as it expects deliveries of 1.8 million in 2023.
The EV maker over the quarter made aggressive price cuts on its Model 3 and Model Y cars which has pushed demand higher.
Tesla's sales prospects, as it confronts a weaker economy, are a key focus for investors. The company said it maintains a long-term target of a compounded 50% annual rise in sales.
Tesla Results: Latest News
- Elon Musk says its Cyber truck will not see mass production until 2024.
- Tesla to invest $3.6 billion in its Nevada truck factory expansion
- Tesla made heavy price cuts on its cars in China, US and Europe.
- Tesla signed paperwork early in January to make electric motors for airplanes, boats and more.
Tesla Results: Analyst View
- Wells Fargo says investors are excited by conservative delivery and margin forecast, but brokerage is doubtful that Tesla would meet its margin targets. Share price target is set at $150.
- Morningstar expects that with Tesla's recent price cuts, it should see strong demand growth even with a slowing economy, particularly from the United States. Price target is $220.
- Piper Sandler noted that the recent weakness in Tesla stock was due to a misplaced concern that falling backlogs and price cuts were indicative of competition or weak demand. Price Target is $300.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.
Is Tesla expected to keep rising?
Wall Street forecasts 2022 full-year earnings advancing 80% to $4.07 per share, after surging 202% in 2021. Sales should jump 55% to $83.3 billion, down from a 71% gain in 2021. Meanwhile in 2023, analysts expect Tesla earnings per share to grow a cooler 40% to $5.66, with sales up 42% to $118.2 billion.
Is it a good time to invest in Tesla?
Its production increased 47% in 2022 versus 2021. But deliveries only increased 40%, leading investors to believe Tesla might not, in fact, meet its previous projections to average 50% growth over the next few years. That said, now seems to be a good time to begin buying, or adding to your position.
What is Tesla's 5 year return?
Tesla's 5 year price total return is 467.3%.