Tesla (TSLA) will report fourth-quarter results late Wednesday, with investors likely to focus on Elon Musk’s 2023 guidance and goals for the EV giant. Tesla shares fell lower on Wednesday.
After a terrible 2022, which saw Tesla shares plunge sharply in December, shares plummeted again to begin 2023. However, Tesla has bounced back since the major price cuts announced on January 6 for vehicles in China. Analysts and investors will take a close look at the results on Wednesday to get a better idea of what Tesla expects for 2o23.
Shares of Tesla fell 2.5% in market trading on Wednesday. TSLA shares recoupd early losses on Tuesday, rising 0.1% by the close. Shares rose 7.7% to 143.75 on Monday after rising 4.9% on Friday.
estimates: Analysts predict fourth-quarter earnings will rise 33% to $1.13 per share. At the end of December 2022, analysts forecast earnings per share of $1.25. Currently, analysts set the revenue target at 39% growth, to $24.67 billion.
merits: Check Wednesday after the market closes.
Tesla already announced that its deliveries reached a record 405,278 in the fourth quarter. As a result, forecasts were not met despite aggressive year-end incentives. Vehicle deliveries were up 31% from a year earlier and nearly 18% from Q3’s 343,830. Shipments also increased by 40% to 1,313,851 in 2022. That was well below the company’s growth target of 50%.
Analysts had expected Tesla deliveries of about 420,000 in Q4, significantly lower than higher estimates. Tesla’s Q3 deliveries had also fallen short.
Tesla production was 439,701 in the fourth quarter, more than 34,000 more than shipments. In the third quarter, production exceeded sales by just over 22,000. Tesla production was 439,701 in the fourth quarter, more than 34,000 more than shipments. In the third quarter, production exceeded sales by just over 22,000.
With production ramping up at the company’s plants in Berlin and Austin, Texas, Tesla’s total production capacity is now well above 450,000 per quarter.
Tesla unit sales totaled 1,313,851 for 2022, up 40% from 2021 but below the 50% target. The Model 3 sedan and the Model Y crossover accounted for the vast majority of sales. The high-end Model S and X vehicles accounted for the rest.
Meanwhile, the Cybertruck is scheduled for release in 2023, which would be Tesla’s first new model since the launch of the Model Y in early 2020. The oft-delayed truck will begin “early production” midway through 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’s 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.
Tesla Stock: Earnings Come After Price Cuts
Tesla’s Q4 earnings follow Tesla China EV registrations bounce in the week of January 5-16 following recent major price cuts. The most recent registration numbers seem to reflect some benefit from Tesla’s Jan. 6 decision to cut prices in China.
Tesla slashed prices for the Model 3 and Y in China, slashing the base Model 3 by more than 13% to $33,570. Local media reports in China suggested Tesla received 30,000 orders within three days of the cuts announced, according to CnEVPost.
Tesla has also announced price cuts in the US and Europe. This makes more models eligible for $7,500 tax credits under the Inflation Reduction Act (IRA).
The EV giant slashed US Model 3 prices by 6%-14%, depending on trim. A standard equipment Model 3 RWD is reduced by $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers meeting the income limits would pay $36,240.
The Performance Model 3 trim was reduced from $9,000 to $53,990, putting it below the $55,000 limit for tax credits. Meanwhile, Tesla’s base Model Y has been reduced by $13,000, or nearly 20%, to $52,990, also below the tax credit limit. The Performance variant for that vehicle has been reduced to $56,990, also down from $13,000.
TSLA shares rallied Friday and Monday after two loss sessions. Shares of Tesla fell Tuesday afternoon, encountering resistance against the stock’s 10-week moving average.
Tesla stock is now up 17% since its Jan. 6 low of 101.81. A number of analysts have also weighed in on Tesla stock and lowered the price targets.
TSLA stock ranks third in the Automakers industry group. Tesla stock has a 42 Composite Rating of 99. The stock has a 5 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for price movement. The EPS score is 75.
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