Tesla shares are up 85% since the start of the year, hitting over $200 per share. The rise comes amid an announcement of strong financial results for 2022, a forward-looking roadmap for 2023, and strong growth in demand.
In 2022, Tesla registered a 65% drop in its share price. Although there were no fundamental reasons provoking this, the fear and uncertainty of investors appeared against the backdrop of concerns about Tesla's ability to maintain demand for its cars. Although company executives said there was no problem with demand, short sellers were able to skillfully play on fear, inflating it to a large size.
However, following Tesla's Q4 2022 report, when Tesla shared impressive results, more investors regained confidence in the manufacturer. As of Thursday, the manufacturer's shares are up 85% year-to-date to break the $200 mark. On February 9, intraday, their price reached $214 per share.
Tesla currently has an installed production capacity of more than 1.9 million vehicles at factories in Shanghai, Fremont, Austin, and Berlin. In addition, in December, the company began deliveries of the first Semi trucks, and in 2023 the production of Cybertruck should start. These additions will also increase overall production capacity and therefore sales.
In addition to developing incredibly fast compared to competitors in the market, Tesla already has the best gross margin in the automotive industry. This allows the manufacturer to lower the price of its vehicles as production increases. In January, the company significantly reduced the prices of its vehicles around the world, resulting in orders skyrocketing. Tesla's rivals are unable to offer the same cuts of prices as they operate to old standards, making their cars expensive to manufacture and selling them through dealerships, making them even more expensive and unattractive to consumers.
© 2023, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.