Elon Musk is the happiest person of the week – Twitter or Tesla?
Tesla can be considered the “face of electric cars” in the global market. Over the past few years, Tesla has done well in the global market. However, in the past few months, the company has fallen uncontrollably. The company’s CEO, Elon Musk, has something to do with it. However, last week, shares of electric car maker Tesla rose 33%. It was the best week since May 2013 and the second best week since the company was founded. On Friday in the United States, Tesla’s stock price rose 11%, its second consecutive intraday gain of more than 10%. This is an increase of nearly 75% from January’s low point of around $236 million. This is also a weekly increase of more than 33%.
This follows a sharp decline in Tesla stock, which has fallen more than 40% in six months. Tesla’s stock price will drop 65% in 2022, which is Tesla’s worst year in the 12 years since its IPO. The company is feeling the pinch of rising car prices, product delays at some companies and CEO Elon Musk’s acquisition of Twitter amid headwinds in the tech and auto industries. However, investor patience was rewarded and Tesla’s share price saw a healthy rebound in 2023.
Tesla shares rebounded this week, as its fourth quarter results beat market expectations. In a conference call with shareholders and analysts, Tesla CEO Elon Musk said the company aims to produce 2 million vehicles by 2023. The company’s official forecast shows it is on track to produce 1.8 million vehicles this year. It has not changed its long-term goal of achieving a compound annual growth rate of 50% over the next few years.
Tesla Q4 performance is very solid
In the fourth quarter, Tesla delivered a strong performance in terms of revenue and earnings. It had total revenue of $24.32 billion, including $324 million in deferred revenue related to Tesla’s driver assistance system. Tesla cut prices in December and January, raising concerns about demand and inventory accumulation.
Analysts had mixed reactions to Tesla’s financial results. Bernstein analyst Toni Sacconaghi, who has an “underperforming” rating on the stock, wrote in a research note Thursday: “For the bulls, the growth story remains fresh and great. . For the bears, the numbers don’t lie.In early January, Tesla announced lower-than-expected car deliveries and production in the fourth quarter.
Tesla’s stock price gains came amid a broader market rebound. For the week, the S&P 500 gained 2.2% and the Nasdaq gained 4.3%. Shares of other US electric car makers also rose. Shares of Rivian rose 22% on the week, while shares of former automakers Ford and General Motors rose more than 7% each. Shares of electric car maker Lucid surged 43% on Friday following rumors that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, was considering taking the company private.
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The Twitter deal has caused confusion for the car brand
Tesla’s poor performance last year was partly due to Musk having to focus on Twitter. He bought the social media company for $44 billion in October. Under Musk’s leadership, Twitter saw massive layoffs, many advertisers left, and internal morale was at an all-time low. Tesla remains the second best-selling stock in the US market, behind Apple. More than 94 million Tesla shares were sold short, according to data from fintech analyst firm S3 Partners.
Ihor Dusaniwsky, managing director of S3 Partners, said that despite the rebound in Tesla shares, active short selling continued. Short sellers believe Tesla’s rise has created “an overheated, overbought stock that will come back, at least in the short term,” he said.
Statistics from S3 Partners show that over the past week, the total number of Tesla shares sold short has increased by 3.9%. Additionally, investors who sold the stock short lost $4.3 billion during the same period.
Tesla bounces back
In addition to the increase in stock prices, Tesla options trading has also increased recently. Nearly 3 million Tesla options contracts on average now change hands each day, up from 1.5 million last year, and more than any other security, according to data from CBOE Global Markets. Currently, Tesla averages about 7% of all trading options. January 6 was the busiest day on record, with more than 5.2 million contracts traded, representing nearly 10% of all options.
In December, Tesla options traded higher than the Invesco QQQ exchange-traded fund (ETF), which tracks Nasdaq 100 stocks, for the first time in nearly two years. In July, the company continued to outpace Apple in trading options, a remarkable achievement. In the S&P 500 index (S&P 500), Tesla ranks sixth in market value, while Apple ranks first. Traders who bought the contracts have “almost complete confidence in Tesla and its technology and its CEO Elon Musk. Tesla is unique, said Steve Sosnick, chief strategist at Interactive Brokers Group, which has attracted so many speculators , it also has countless fanatical followers.
Recently, Tesla made a big price cut for its electric cars and it seems to be bringing the company back. Elon Musk has said that price cuts will drive purchases to 2023 and that Tesla could sell 2 million cars this year. Tesla Chief Financial Officer Zach Kirkhorn said the price cuts will hurt profitability, but margins should improve as the company cuts costs. At Wednesday’s close, Tesla shares were up 0.38%. Tesla shares rose 4.3% in after-hours trading after the earnings report. This is a huge advantage for Tesla.
