Tesla shares nail January rebound with expected earnings

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tesla (TSLA) reports fourth-quarter earnings on Wednesday night, with investors likely to focus on Elon Musk’s 2023 guidance and goals for the electric vehicle giant. Tesla shares fell on Tuesday.




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After a terrible 2022, during which Tesla shares plunged sharply in December, shares fell again to kick off 2023. However, Tesla has bounced back since announcing its big price cuts on January 6 for vehicles. in China. Analysts and investors will be watching the results closely on Wednesday to get a better idea of ​​what Tesla expects for 2023.

Tesla shares were down 0.4% in market trading on Tuesday. The shares advanced 7.7% to 143.75 on Monday after soaring 4.9% on Friday.

Tesla earnings

Dear All: Analysts forecast earnings to rise 33% to $1.13 per share in the fourth quarter. At the end of December 2022, analysts forecast EPS of $1.25. Currently, analysts set the revenue target at 39% growth, to $24.67 billion.

Profits: Check the Wednesday after the market closes.

Tesla already announced that its deliveries hit a record 405,278 in the fourth quarter. This missed lowered forecasts despite aggressive year-end incentives. Vehicle deliveries were up 31% from a year earlier and nearly 18% from 343,830 in the third quarter. Deliveries also increased 40% to 1,313,851 in 2022. That was well below the company’s 50% growth target.

Analysts had expected fourth-quarter Tesla deliveries of about 420,000, down significantly from higher estimates. Tesla’s third-quarter deliveries had also fallen short.

Tesla production reached 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In the third quarter, production exceeded sales by just over 22,000. Tesla production reached 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In the third quarter, production exceeded sales by just over 22,000.

With increased production at the company’s plants in Berlin and Austin, Texas, Tesla’s overall production capacity is now well above 450,000 per quarter.

Tesla unit sales reached 1,313,851 by 2022, up 40% from 2021 but below the 50% target. The Model 3 sedan and Model Y crossover accounted for the vast majority of sales. High-end Model S and X vehicles accounted for the remainder.

Meanwhile, the Cybertruck is slated to arrive in 2023, which would be Tesla’s first new model since the Model Y launched in early 2020. The often-delayed truck will begin “early production” in mid-2020. year, according to Musk. Other reports say that the Cybertruck will start mass production at the end of 2023.

Tesla also began delivering its semi-trucks long haul to PepsiCo (PEP) in December. It’s unclear how many Semi trucks will be produced by 2023, and pricing and key specifications are still unclear. Tesla plans to build a $3.5 billion manufacturing plant in northern Nevada for Semi trucks, according to the Nevada Independent.

Tesla Stock: Gains Come After Price Cuts

Tesla’s fourth-quarter earnings follow Tesla China EV records that rebounded in the week of January 5-16, following recent big price cuts. The most recent registration numbers appear to reflect some benefit from Tesla’s January 6 decision to cut prices in China.

Tesla slashed prices for the Model 3 and Y in China, with the base Model 3 slashed more than 13% to $33,570. Local media reports in China suggested that Tesla had received 30,000 orders within three days of the announced cuts, according to CnEVPost.

Tesla has also announced price cuts in the United States and Europe. This will make more models eligible for tax breaks of $7,500 under the Inflation Reduction Act (IRA).

The electric vehicle giant slashed prices for the US Model 3 by between 6% and 14%, depending on the model. A standard-equipment Model 3 RWD is down $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers who meet the income limits would be paying $36,240.

The Performance Model 3 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 nearly 20%, to $52,990, also below the tax credit limit. The Performance variant for that vehicle is down to $56,990, also $13,000 less.

Tesla Stock

TSLA shares rallied on Friday and Monday after two sessions of losses. Tesla shares were lower on Tuesday afternoon, hitting resistance at the stock’s 10-week moving average.

Tesla shares are now up 16% from a January 6 low of 101.81. Several analysts have also weighed in on Tesla’s stock, lowering price targets.

TSLA shares rank third in the automaker industry group. Tesla shares have a composite rating of 42 out of 99. The shares have a relative strength rating of 5, an exclusive IBD Stock Checkup indicator for share price movement. The EPS rating is 75.

Follow Kit Norton on Twitter @KitNorton for more coverage.

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