Elon Musk is the happiest person of the week – Twitter or Tesla?
Tesla can be considered the “face of electric cars” in the global market. Over the past few years, Tesla has done quite well in the global market. However, the company has been spiraling downward for the past few months. The CEO of the company, Elon Musk, has something to do with it. Despite this, shares of electric car maker Tesla have risen by 33% in the past week. This is the best week since May 2013 and the second best week since the company was founded. Tesla shares rose 11% in the US on Friday, the second straight day of gains of more than 10%. That’s up nearly 75% from January’s low of $236 million. This is also a weekly increase of over 33%.
It follows a sharp decline in Tesla shares, which have fallen more than 40% in six months. Tesla’s stock price will fall 65% in 2022, its worst year in 12 years since its IPO. The company is feeling headwinds in the tech and auto industries amid rising car prices, product delays at some companies and CEO Elon Musk’s purchase of Twitter. However, investor patience was rewarded and Tesla’s stock price saw a healthy rise in 2023.
Tesla shares rose again this week as fourth-quarter results beat market expectations. In a conference call with shareholders and analysts, Tesla CEO Elon Musk said that the company aims to produce 2 million vehicles by 2023. The company’s official forecast shows that it is on track to produce 1.8 million vehicles this year. It has not revised its long-term target of achieving a 50% compound annual growth rate over the next few years.
The performance of the Tesla Q4 is very solid
In the fourth quarter, Tesla delivered a strong performance in terms of revenue and profit. Its total revenue is $24.32 billion, including $324 million in deferred revenue related to Tesla’s driver assistance system. Tesla cut prices in December and January, raising concerns about demand and inventory build-up.
Analysts have mixed reactions to Tesla’s financial results. Bernstein analyst Tony Sacconaghi, who has an “underperform” rating on the stock, wrote in a research note on Thursday: “For the bulls, the growth story remains fresh and going well. . For the bears, the numbers are not lying. In early January, Tesla reported that fourth-quarter car deliveries and production were better than expected. announced that it is low.
Tesla’s stock price rally comes amid a broader market recovery. During the week, the S&P 500 gained 2.2%, and the Nasdaq gained 4.3%. Shares of other US electric car manufacturers also rose. Shares of Rivian rose 22% for the week, while former automakers Ford and General Motors rose more than 7% each. Shares of electric car maker Lucid surged 43% on Friday after rumors that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, was considering taking the company private.
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Twitter deal hits car brand
Tesla’s poor performance last year was partly due to Musk’s focus on Twitter. He bought the social media company in October for $44 billion. Under Musk’s leadership, Twitter has seen massive layoffs, many advertisers gone, and internal morale is at an all-time low. Tesla remains the second most traded stock in the US market after Apple. More than 94 million Tesla shares were short-sold, according to fintech analyst firm S3 Partners.
Ihor Dusaniwsky, managing director of S3 Partners, said active short selling continued despite the rally in Tesla shares. Short sellers believe Tesla’s rise creates “an overheated, overbought stock that will bounce back, at least in the short term.”
Statistics from S3 Partners show that the total number of Tesla shares sold short increased by 3.9% over the past week. Additionally, investors who shorted the stock lost $4.3 billion over the same period.
Tesla bounces back
Along with rising stock prices, Tesla’s options trading has also increased recently. An average of nearly 3 million Tesla options contracts now change hands per day, compared with more than 1.5 million a year ago and for any other security, according to data from CBOE Global Markets. Tesla currently accounts for about 7% of all options trades. January 6 was the busiest day on record, with more than 5.2 million contracts traded, almost 10% of all options.
In December, for the first time in nearly two years, Tesla options traded higher than the Invesco QQQ exchange-traded fund (ETF), which tracks Nasdaq 100 stocks for the first time in nearly two years. In July, the company consistently outperformed Apple in options trading, a remarkable achievement. In the S&P 500 index (S&P 500), Tesla ranks sixth in terms of market capitalization, and Apple ranks first. Traders who bought the contracts had “almost complete confidence in Tesla and its technology and CEO Elon Musk. Tesla is unique, attracting many speculators, said Steve Sosnick, chief strategist at Interactive Brokers Group, who has countless fanatical followers.
Recently, Tesla made big price cuts for its electric cars and it seems to be getting the company back on track. Elon Musk says price cuts will drive purchases in 2023, and Tesla could sell 2 million cars this year. Tesla Chief Financial Officer Zach Kirkhorn says the price cuts will hurt profitability, but margins should improve as the company cuts costs. As of Wednesday’s close, Tesla shares were up 0.38%. Tesla shares rose 4.3% in after-hours trading after the earnings report. This is a huge advantage for Tesla.
