Tesla just had its best week since May 2013

Tesla CEO Elon Musk smiles as he talks to guests at the Offshore Northern Seas 2022 (ONS) meeting in Stavanger, Norway on August 29, 2022.

Liu Jialing | AFP | beautiful pictures

Tesla the stock is up 33% this week, marking its best weekly performance since May 2013 and the second best in history.

Shares rose 11% on Friday to close at $177.88. Recovery takes place after a period of six months, during which Tesla stock has fallen more than 40%. The 65% drop in shares in 2022 is the worst in more than 12 years Tesla went public.

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Tesla’s rally this week was supported by a strong fourth-quarter earnings report. In a call with shareholders and analysts, CEO Elon Musk says the company has achieved its goal has the capacity to produce 2 million vehicles by 2023, and he thinks demand will also support sales of those vehicles.

Official guidelines call for production of 1.8 million vehicles this year. The company has not revised its long-term target of a compound annual growth rate of 50% over a multi-year period.

Tesla’s five-day performance ranks against Rivian and Ford Motor Company.

Tesla beat in both revenue and profit, recording total revenue of $24.32 billion, including $324 million in deferred revenue related to Tesla’s driver assistance systems. The discount company for its autos spiked in December and January, leading to concerns about demand and inventory build-up.

Analysts’ reaction to Tesla’s numbers has been mixed.

Bernstein’s Toni Sacconaghi, who has underperformed the stock, wrote in a note on Thursday: “For the bulls, the bull story is alive and well. “For bears, numbers don’t lie.”

In early January, Tesla announced the fourth quarter car delivery and production not as expected.

Tesla’s share price spiked amid a broader market recovery. The S&P 500 was up 2.2% for the week and Nasdaq was up 4.3%.

Other U.S.-based electric vehicle makers saw their shares move higher. Rivian up 22% for the week, while shares of used carmakers Ford and common engine each increased by more than 7%.

Electric car manufacturers lucid also spiked on Friday, up 43% on rumor that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, intends to take the company private.

Some of Tesla’s underperformance in the last year is attributed to Musk shifting focus to Twitter, which he acquired for $44 billion in October. Under Musk’s leadership, Twitter has experienced Mass layoffs and advertisers run awayspiritual gutting.

Tesla is still the second most short-sold stock in the US market, only after Apple, which means a large number of investors are betting on the decline. According to data from S3 Partners, more than 94 million shares of the automaker have been shorted.

S3 CEO Ihor Dusaniwsky told CNBC that despite the recovery momentum, short selling continued. Short sellers see Tesla’s appreciation as having created “an overheated and overbought stock, at least due to a near-term reversal,” he said. In the last week, S3 Partners said the total number of shares shorted rose 3.9%, while investors shorting stocks lost $4.3 billion in that time period.

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