Yesterday, the financial statements for the final quarter of 2022 were released (Wed) Analysts and investors were taken aback by Tesla. Tesla, in contrast to predictions, reported sales of $24.3 billion for the quarter, above estimates of $24.1 billion. The adjusted earnings per share of $1.19 exceeded expectations ($1.13 per share). The stock increased by 7% at the close of last night’s late trading period, and it is already up 8% in Wall Street trading.
According to experts, it appears like CEO and creator Elon Musk and his team did enough for investors to allay their fears regarding the worst-case scenario for the stock’s price in the near future. The worst-case scenario, according to experts, would be if the stock once more oscillates around its yearly low price of $101.
As previously reported, Tesla increased by more than 7% following the stories’ publication. “Given the reductions in Tesla’s target price since the year’s beginning and its dynamics in relation to China, there was high demand for the stock. According to our assessment, the investor call was upbeat and provided a plausible prediction for vehicle deliveries in 2023. The market must properly absorb this “Tesla pundit and Wedbush analyst Dan Ives tweeted.
Demand has been the most frequently asked question by investors, according to Musk, who stated this on the investor call. He stated, “I want to take the fear out of your hearts,” adding that sales in January were the best the business has ever experienced. The company recognized during the call that average sales prices in the industry have been “on a decreasing slope for many years,” adding that in order for Tesla to develop into a business that sells millions of cars annually, a “acceptable pricing” will be required.
Demand rose as prices fell.
Tesla cut the cost of its vehicles at the end of 2022 and the beginning of this year, upsetting many consumers in Israel, the US, and China who had only just purchased a new Tesla at a higher price and are now faced with an immediate drop in used Tesla prices. But it appears that the price reduction actually increased demand. Musk claimed yesterday night during a call with investors and analysts that “We have received the highest number of orders in our history thus far in January. We are currently seeing orders that are approximately double the rate of production.”
After the business scaled up production at its new factories, one of the investors questioned Musk about why Tesla’s guidance for output was just 1.8 million cars in 2023. Tesla responded, “We choose the number 1.8 million because it seems like there is always some dreadful event or force majeure occurring somewhere on Earth. There may be earthquakes, tsunamis, wars, plagues, etc., but we have no influence over that. We have the capacity to create 2 million cars this year, provided there are no major supply chain disruptions or other major issues. That will also likely be in demand, in my opinion.”
However, the firm reiterated in the investor call that it “plans to boost output as rapidly as possible in accordance with the aim of the annual growth rate of 50%, which we started targeting in early 2021.” The company did not release any new production predictions.
Investors questioned Musk on how he intended to safeguard Tesla’s name and image from any negative publicity resulting from his political opinions and his new position as CEO and owner of Twitter, the social media platform he acquired in October 2022. “I currently have 127 million followers, and that figure is increasing quickly. “I may not be popular with some individuals, but for the vast majority of people, the follower count speaks for itself,” Musk responded, “this shows that I am fairly popular.