Tesla stock price jumps: Tesla can increase sales and profits

In the fourth quarter of 2022, Tesla reported earnings per share of $1.19. This is a significant increase compared to the same period last year, when the group was around Elon Musk It posted $0.847 in earnings per share. Analysts had expected earnings to rise to $1.13 per share.

The electric car maker’s quarterly revenue was $24.32 billion, up from the $24.16 billion that analysts had expected. Tesla generated $17.72 billion in sales in the fourth quarter of last year.

For the full year 2022, Tesla posted earnings per share of $4.07. Analysts expected $3.98 a share here — after $2.26 a share in the previous fiscal year. In terms of sales, the leading e-car company has $81.46 billion on its books for the full year. Analysts expected a strong increase in Musk Group sales from $53.82 billion in the previous year to $82.14 billion.

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Despite high inflation, economic concerns, and supply chain problems, Tesla made more profits in 2022 than at any time in the fiscal year. The electric vehicle group from superstar entrepreneur Elon Musk increased its profits by 128 percent from a year earlier to $12.6 billion (€11.5 billion), Tesla announced. Revenue grew 51 percent to $81.5 billion. “It’s been an amazing year, our best yet,” Musk said when presenting the numbers.

But what about 2023? “It’s possible we’re going to have a very difficult recession,” Musk warned. If this happens, however, Tesla’s materials costs should drop dramatically. Either way, the outlook isn’t rosy — without a stronger economic contraction, major central banks could continue to raise key interest rates, making it more difficult to finance car purchases. Tesla said in its letter to shareholders that management knows there are questions about the “uncertain economic environment.” Nevertheless, the market leader in the e-car segment has set ambitious goals for the current year.

Tesla wants to ramp up production “as soon as possible” in 2023 and sees itself on track to deliver about 1.8 million vehicles for the full year. Musk said he sees actual potential in two million people. But some external factors could not affect Tesla. The group confirmed that it will continue to strive for 50 percent annual growth in the long term. But Tesla missed that target as early as 2022 – it increased deliveries by 40 percent to 1.3 million electric vehicles. In the three months to the end of December, it only grew by 31 percent over the previous year.

Recently, the company’s price cuts have sparked more concerns among investors about potential dwindling demand and shrinking profit margins. Some owners of older Teslas have also been annoyed by the low residual values ​​of their cars. However, Musk defended the cut in an online conference with analysts and investors — Tesla’s goal has always been to make electric cars more accessible to the general public. He also faced concerns about demand firmly – orders are currently rising faster than Tesla’s production.

The group continues to poised for rapid growth—production capacity will nearly double in 2022. Musk is planning more models, as production of the long-awaited Cybertruck is finally slated for this year, and Tesla has opened up the lucrative pickup truck market in the US. The company mainly blamed the situation in China on production and delivery problems last year, as Covid shutdowns put severe pressure on the large factory in Shanghai.

In the fourth quarter, Tesla increased net income 59 percent year over year to $3.7 billion. Revenue increased 37 percent to $24.3 billion. Thus, the company achieved new records at the end of the year. The numbers beat analyst expectations – significantly in terms of net income and slightly in terms of revenue. Investors initially reacted cautiously, but Musk’s comments during the conference call eventually lifted the stock significantly into the plus sign after the trading day.

Tesla had a hard time in the financial market last year, as the share price collapsed by about 65 percent in 2022, but it has picked up again recently. Elon Musk’s escapades surrounding the controversial acquisition of online platform Twitter and Tesla stock sales to fund the roughly $44 billion deal have been poorly received by investors. There have already been complaints from major influential shareholders that the tech billionaire — who also runs the aerospace and rocket company SpaceX — neglects Tesla too much.

Record earnings and forecast fuel recovery Tesla

Strong business numbers and what some saw as confident guidance gave Tesla shares a boost on Thursday. In US trading on the Nasdaq Stock Exchange, they rose 10.97 percent to $160.27, continuing the recovery that began at the beginning of the year. The electric vehicle manufacturer’s shares rose above the 50-day line for the first time since September. The still-fresh year-over-year increase is now about 30 percent. From September to the lows at the start of the year, however, the cycle has tripled previously.

Analyst Ryan Brinkman of US bank JPMorgan described the delivery target as disappointing, especially given the recent discounts on Tesla cars, which should only have an actual impact in the current quarter. As a result, margin expectations in the market are likely to decline, according to Brinkman. The price cuts have raised concerns among investors about possible dwindling demand.

Tesla noted the strongest year-to-date demand in the company’s history, analyst Mark Delaney of US investment bank Goldman Sachs wrote at an analyst conference. The number of orders is currently double the production numbers, the electric car manufacturer announced. Even if that level of demand isn’t likely to be sustained, according to Delaney, Tesla is still well ahead of its delivery forecast, which he, like Tesla, estimates at 1.8 million vehicles.

The American group confirmed that it will continue to strive for 50 percent annual growth in the long term. But Tesla missed that target as early as 2022 – deliveries increased by only 40 percent. So analyst Philippe Hoshua of the US bank Jefferies came to a cautious preliminary conclusion: “The consensus estimates should continue to decline in the coming weeks.” Free cash fell short of market expectations by about half, dragged down by rising inventories.

Tesla has had a tough time in the financial market in 2022. The share price collapsed about 65 percent last year and fell to its lowest level since August 2020 at the end of the year his sales of Tesla stock to fund a roughly $44 billion deal with investors. There have already been complaints from major influential shareholders that the tech billionaire — who also runs the aerospace and rocket company SpaceX — neglects Tesla too much.

finanzen.net / dpa-AFX editorial office

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