Should you buy Tesla stock on the stock market? – 01.02.2023, at 10:20
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Despite Tesla’s fourth-quarter 2022 profit rising 12% and the company reporting better-than-expected financial numbers for the final quarter of 2022, Tesla’s stock today fell 53% in a year to return to its November market price. lost a lot. 2020.
Is it time to take advantage of the falling Tesla stock price to buy Tesla on the stock market? What are the company’s strengths? What does he need to do to continue his rise in 2023? Is it a good time to buy Tesla stock? Discover Tesla share analysis by Café de la Bourse.
The latest results from Tesla
Here are some key facts and figures from Tesla’s Q4 2022 financial results report.
- Q4 2022: Highest quarterly revenue, operating profit and net profit ever
- Total annual revenue: $81.5 billion (up 51% from Q4 2021)
- 2022 operating margin: 16.8%
- Q4 2022 Total Gross Profit: $5,777 million (up 19% from Q4 2021)
- EPS: 1.07 (up 57% from 4Q 2021)
- Total deliveries Q4 2022: 405,278
- Q4 2022 total production: 439,701
- Total annual shipments 2022: 1.31 million (up 40% from Q4 2021)
- Total annual production 2022: 1.37 million (up 47% from Q4 2021)
What are Tesla’s strengths?
Tesla is considered one of the leaders in the electric car industry with its cars equipped with advanced technologies such as autonomous driving, digital display, remote control systems and updates, large capacity batteries and fast charging systems.
Tesla has become a recognized and respected brand in the automotive industry with its strong online presence and innovative products, positive brand image, leadership by founder Elon Musk, and a loyal fan base with marketing strategies and effective communication.
Tesla has a long-term vision that aims to accelerate the transition to clean energy and reduce greenhouse gas emissions, which should allow it to increase its results over time as many countries support the use of electric vehicles.
Tesla has grown rapidly over the past few years in terms of car sales and earnings (as shown in its Q4 2022 earnings release) and market capitalization (although Tesla’s stock price has fallen sharply in the past year).
Tesla is present in many countries around the world with manufacturing plants, research and development centers, service centers and sales points in many economies.
What challenges will Tesla face in 2023?
Rising interest rates in the US
While analysts expect Fed Funds increases to moderate in 2023, the Fed is expected to continue raising interest rates this year and keep them at that level for some time. That’s why it’s getting more and more expensive for Americans to borrow money to buy a Tesla. This situation is similar in many other countries.
Large-scale automotive production and stocks
Tesla must continue to increase car production to meet demand and meet sales targets. Therefore, the company should increase its investments in manufacturing plants, automated production tools and advanced manufacturing technologies. It also needs to hire and train skilled workers to support its development and manage logistical challenges.
Increase in production costs
The cost of producing Tesla cars is under pressure from runaway inflation and rising prices for many raw materials, including lithium, which is used for batteries. If Tesla wants to maintain its margins, rising production costs could drive up car prices.
Tesla is facing increasing competition in the electric vehicle market with new players entering the market and traditional automakers developing their own electric vehicles. This could reduce Tesla’s market share and make it harder for it to maintain its competitive advantage.
Development of charging infrastructure
Tesla must continue to develop its network of charging stations to support the growth of electric car sales and to reassure consumers of the autonomy of their cars.
Tesla relies on technology for its products, and reliability issues or delays in the development of new technologies could adversely affect sales and brand reputation.
Technical analysis of Tesla stock
After losing more than 53% in a year, Tesla stock is on the rise in 2023 as it has gained more than 33% since the start of 2023.
Graphical analysis of Tesla shares on the stock market
stock market cafe
Source: Trade Outlook
After hitting $100.97, the lowest level since August 2020 at the beginning of the year, with the RSI in the oversold zone and a negative MACD, the share price of Tesla stock has rallied strongly and is currently trading in an uptrend channel. The technical setup is generally positive, and despite the many uncertainties surrounding global growth in 2023, Tesla’s share price should benefit from improving fundamentals.
Is it a good time to buy Tesla stock in the stock market?
Tesla offers many advantages to those looking to gain exposure to the electric vehicle market through a reputable automaker and a strong brand. However, with the global economic landscape uncertain, the company has to face many challenges to continue its rise in 2023.
Tesla’s recent share price drop makes Tesla stock more affordable now, offering a more accessible valuation after a rally in recent years, which could make it an attractive long-term investment opportunity.
According to analysts at CNN Money, Tesla’s 12-month stock price forecast has an average target of $194, a high estimate of $436, and a low estimate of $85. The median estimate represents an increase of more than 34% from Tesla’s last trading price of $144.44. Moreover, the current consensus among the 45 analysts surveyed is to buy Tesla stock on the stock.
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