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Tesla stock rises on earnings, upcoming vehicles; EV Giant misses out on revenue

Tesla ( TSLA ) reported mixed fourth-quarter results on Wednesday, topping earnings estimates while missing revenue views. Tesla shares rose on Wednesday, extending a strong rally of more than 40% from bear market lows.




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After a terrible 2022, with Tesla stock plunging sharply in December, shares fell again to start 2023. However, Tesla has bounced since its big price cuts announced Jan. 6 for vehicles in China, and has continued to rise since announcing price cuts in the US and Europe a week later.

Analysts and investors will take a closer look at the results on Wednesday to get a better idea of ​​what Tesla expects for 2o23.

Tesla shares rose 1% after hours. Shares rose 0.4% to 144.47 in Wednesday trading and turned higher.

Tesla earnings

Discretion: Analysts forecast earnings to jump 33% to $1.13 per share in the fourth quarter. At the end of December 2022, analysts predicted EPS of $1.25. Analysts had set the revenue target for 39% growth to $24.67 billion.

Earnings: Tesla’s EPS rose 40% to $1.19, while revenue grew 37% to $24.32 billion in Q4.

For the full year, revenue rose 51% to $81.46 billion, missing estimates. Earnings rose 80% to $4.07 per share, topping Wall Street expectations.

Tesla had already announced that its deliveries hit a record 405,278 in the fourth quarter. This missed lowered forecasts despite aggressive year-end incentives. Vehicle deliveries were up 31% from a year earlier and nearly 18% from 343,830 in Q3. Deliveries also rose 40% to 1,313,851 in 2022. That was well below the company’s 50% growth target.

Analysts had expected Tesla deliveries in the fourth quarter to be around 420,000, which was reduced significantly from higher estimates. Tesla’s Q3 deliveries had also fallen short.

Tesla production reached 439,701 in the fourth quarter, outpacing deliveries by more than 34,000. In the 3rd quarter, production topped sales by just over 22,000. Tesla production reached 439,701 in the fourth quarter, outpacing deliveries by more than 34,000. In the 3rd quarter, production topped sales by just over 22,000.

With production ramping up at the company’s factories in Berlin and Austin, Texas, Tesla’s total production capacity is now well over 450,000 per hour. quarter.

Tesla unit sales reached 1,313,851 for 2022, up 40% from 2021 but below the 50% target. The Model 3 sedan and Model Y crossover accounted for the vast majority of sales. The advanced Model S and X cars accounted for the rest.

Meanwhile, the Cybertruck is expected to arrive in 2023, which would be Tesla’s first new model since the Model Y launched in early 2020. The oft-delayed truck will begin “early production” in the middle of the year, according to Musk. Other reports say the Cybertruck will begin mass production in late 2023.

Tesla also began supplying its long-haul semi-trucks to PepsiCo (PEP) in December. It is unclear how many semi-trucks will be produced in 2023, with key pricing and specifications still unclear. Tesla plans to build a $3.5 billion manufacturing facility in northern Nevada for semi-trucks, according to the Nevada Independent.

On Wednesday, Tesla confirmed that production and delivery challenges throughout 2022 were “largely concentrated in China.”

Tesla plans to ramp up its production volume “as quickly as possible” to align with its 50% compound annual growth rate (CAGR) target. That goal goes back to 2021. For 2023, Tesla said it expects to produce about 1.8 million vehicles, a 37% increase over 2022.

The EV giant also said the Cybertruck “remains on track to begin production later this year.”

The company added that its next-generation vehicle platform is under development and that further details would be shared at Investor Day on March 1, 2023.

Tesla shares: Earnings come after price cuts

Tesla’s Q4 earnings follow Tesla China EV registrations that jump in the week of 5-16. January after the recent major price reductions. The latest registration numbers appear to reflect some benefit from Tesla’s Jan. 6 decision to lower prices in China.

Tesla cut prices for the Model 3 and Y in China, with the base Model 3 dropping more than 13% to $33,570. Local media reports in China suggested that Tesla had received 30,000 orders within three days of the announced cuts, according to CnEVPost.

Tesla has also announced price cuts in the US and Europe. This will make several models eligible for tax incentives of $7,500 under the Inflation Reduction Act (IRA).

The electric car giant cut US Model 3 prices by 6%-14%, depending on trim. A standard trim Model 3 RWD has been cut by $3,000 to $43,990. With the IRA tax credit on the vehicle, consumers meeting income limits would pay $36,240.

The Performance Model 3 trim was cut by $9,000 to $53,990, coming in under the $55,000 threshold for tax credits. Meanwhile, Tesla’s base Model Y has been cut $13,000, or nearly 20%, to $52,990, also below the tax credit limit. The Performance variant of that vehicle has been slashed to $56,990, also down $13,000.

Tesla stock

Tesla shares are up 43% since a Jan. 6 low of 101.81, reaching their 50-day and 10-week lines.

This is despite the fact that a number of analysts have also downgraded Tesla stock, cutting price targets and earnings estimates.

TSLA shares rank third in the Auto Manufacturers industry group. Tesla stock has a 46 Composite Rating out of 99. The stock has a 5 Relative Strength Rating, an exclusive IBD Stock Control gauge of stock price movement. The EPS rating is 75.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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