Tesla Shares Pop Almost 11% After Company Shares Strong Earnings

Tesla faced a very troublesome situation throughout the year 2022. Its stocks were constantly being pulled lower and the situation did not recover for the company throughout the year.

When the company needed Elon Musk the most, he was busy scuffling with Parag Agrawal, the former CEO of Twitter.

Musk’s entire year of 2022 was dedicated to dealing with Twitter. Initially, he had to fight with the executives at Twitter to gain access to the data he needed from the social media company to investigate bot accounts.

The latter part of the year was dedicated to Elon Musk generating funds to finalize the deal of acquiring Twitter for $44 billion.

In the process, Musk even sold the shares belonging to Tesla that were worth several billion, to generate enough funds for the deal.

Throughout these developments, investors were uncertain about the future of Tesla. They thought that the company will not be able to perform well and will definitely fail to meet its earnings target.

Surprisingly, the company has performed much better than what the analysts and the shareholders had expected from the company.

Tesla Shares have Surged Significantly

In the extended market trading session, the share prices for Tesla recorded a major boost. The data shows that the trading prices for the company have been boosted by almost 11% in the latest trading session.

Although the analyst and the shareholder sentiments were mixed, the company has managed to beat the top and bottom expectations. The company has performed really well and has taken the market by a surprise.

The company has even increased its outlook showing that it will be able to achieve so much in the due course.

Price Cuts have Boosted Demand

The manufacturer of electric vehicles has even introduced a price cut in late 2022 and early 2023. The price cuts have definitely seen a sudden spike in demand for the company.

Due to recent developments, the share prices for electric vehicle manufacturers have continued surging. It is performing quite well in the stock market and the investors now have very high hopes.

As the company introduced price reductions, it witnessed a great surge in demand. This has allowed the EV maker to make bold decisions and increase their outlook for the rest of the year.

Based on their recent performance, Elon Musk went ahead and shared a very optimistic outlook for the company.

Elon Musk has even hiked their delivery target for the entire year 2023. He gave reasons that may cause a problem in hitting their delivery target but their attempt would be to make it happen no matter what.

According to Elon Musk, their target is to achieve 2 million deliveries in the year 2023. So far, this is the highest delivery target Tesla has ever set for a year.

Musk stated that they are hoping that the year remains smooth and steady for them and their business. Their biggest fear in the manufacturing line is supply chain disruptions.

If they face disruptions, then they will not be able to perform well. This would stop them from hitting their target.

However, if things fall in line and go as predicted, then they will be unstoppable. They will be able to hit their delivery target of 2 million for the year 2023 and set a new record.

It is anticipated that the price cuts will definitely add a major positive factor in boosting the sales and deliveries of the vehicles.

Tesla’s Performance in January

Musk was very excited to talk about the orders their company has received so far in the month of January. He claimed it is the highest number of orders they have received in any month in their entire operational history.

For the fourth quarter, Tesla reported that their revenue was $21.33 billion and their earnings were $1.19 per share.