According to a CNBC report, the stock of Tesla increased by 33% over the past week, which is the second-best weekly performance on record and the biggest since May 2013.
The stock rose 11% on Friday, January 27 to close at $177.88. The price of Tesla shares had dropped by more than 40% in the six months before the rise.
Tesla has been a publicly traded company for over twelve years, and the stock’s 65% fall in 2022 was its worst performance to date.
CNBC said that Tesla’s rise this week was due to a good earnings report for the fourth quarter.
2 Million Vehicles
The business was on schedule to produce 2 million vehicles in 2023, according to CEO Elon Musk, and demand will drive up sales of these vehicles, he said on a conference call with investors and analysts.
This year, 1.8 million vehicles are expected to be produced, according to official projections. The car manufacturer still intends to achieve a 50% compound annual growth rate over a number of years as its long-term goal.
Tesla’s total revenue was $24.32 billion, which included $324 million in deferred revenue from its driver assistance systems. The company dramatically decreased the price of its autos in December and January.
At the start of January, Tesla revealed that production and deliveries of vehicles during the fourth quarter were below expectations.
According to CNBC, the rise in Tesla’s stock followed a broader market upturn. Over the course of the week, the Nasdaq rose by 4.3% while the S&P 500 rose by 2.2%.
Additionally, shares of other US-based producers of electric vehicles rose. Rivian’s stock rose by 22% during the course of the week, while shares of Ford and General Motors both experienced rises of over 7%.
Due to rumours that Saudi Arabia’s Public Investment Fund intended to take the company private, Lucid also saw a rise on Friday, rising 43%.
The poor performance of Tesla in 2022 can be partly blamed on Musk’s decision to focus on Twitter, which he bought in October for $44 billion.
Second Most Shorted Company
On the US stock market, Tesla is still the second-most shorted company, only behind Apple, indicating that many investors are betting on a drop. Data from S3 Partners shows that about 94 million of the automaker’s shares are shorted.
In related news, Tesla said that, in spite of its earlier growth ambitions, there would not be a second production line at its Shanghai Gigafactory. Given that the facility has been functioning virtually at full capacity for a few months, this came as a surprise.
According to Tesla’s quarterly profit report, the company’s primary focus in China in 2022 was on adjustments to manufacturing and delivery.
In a statement, the company said, “Since our Shanghai production has been running close to full capacity for several months, we do not expect a significant sequential volume increase in the near future.”
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