Tesla Stock: A Look at 2022 and 2023
Tesla Inc. (TSLA) has been one of the most talked about stocks in recent years, with its meteoric rise to become the world’s most valuable automaker. The company has seen its share price skyrocket over the past few years, driven by strong sales of its electric vehicles and a growing demand for sustainable transportation solutions. However, in 2021, Tesla faced some major challenges due to the global pandemic and a bear market that saw many stocks plummet. In this article, we will take a look at how Tesla fared in 2022 and what investors can expect from the company in 2023.
In 2021, Tesla was hit hard by the pandemic-induced economic downturn. Despite strong sales of its electric vehicles, the company’s share price dropped significantly as investors worried about the impact of the pandemic on consumer spending and demand for electric vehicles. This led to a significant drop in Tesla’s stock price from around $900 per share at the start of 2021 to around $650 per share by mid-year and continued to decline to as low as 102.0 in early 2022.
However, despite these challenges, Tesla managed to remain profitable throughout 2021 thanks to cost-cutting measures and increased efficiency in production processes. The company also benefited from government incentives for electric vehicle purchases as well as increased demand for sustainable transportation solutions during the pandemic.
In 2022, Tesla continued to benefit from these trends as well as increasing demand for its vehicles in Europe and China. The company also announced plans to expand its production capacity with new factories in Germany and Texas. This expansion allowed Tesla to increase the production of its vehicles while also reducing the costs associated with producing them.
Tesla had a record-breaking year in 2022, with the company reporting its highest-ever revenue and net income. In Q4 2022 alone, Tesla reported $24.3 billion in revenue and earnings per share of $1.19, beating analyst expectations. This was despite a slight decrease from Wall Street’s expectations of $24.6 billion in revenue.
The company also reported its third consecutive year of profitability, with a net income of $14.1 billion for 2022 compared to $5.5 billion in 2021. Additionally, Tesla beat analysts’ estimates for adjusted earnings per share ($), reporting $1.05 compared to the expected $1.01 for Q3 2022.
These impressive results were driven by strong demand for Tesla’s products and services around the world, as well as increased production efficiency and cost savings initiatives implemented by the company over the past year. With these positive results, it is clear that Tesla is continuing to make strides toward becoming one of the most successful companies in the world today.
Tesla has been steadily increasing its vehicle deliveries since 2012. According to Statista, in 2012 Tesla delivered just over 22,000 vehicles. By 2022, that number had grown to over 1.3 million vehicles. the chart above shows the growth of Tesla’s annual vehicle deliveries from 2012-2022:
In the fourth quarter of 2022 alone, Tesla reported deliveries of 405,278 vehicles and production of 439,701 vehicles according to CNBC. That brings Tesla’s 2022 full-year total up to 1,313,851 deliveries and 1,369,611 production numbers according to InsideEVs.
Tesla broke its own delivery record between January and March 2022 with revenue rising 56% to $21.45 billion versus the consensus estimate of $22.5 billion according to Investing Academy. Global fourth-quarter deliveries could reach 420,760 vehicles according to Auto News Europe estimates.
Overall cumulative deliveries have now passed 3.2 million cumulative deliveries according to Clean Technica and it looks like this trend is set to continue into 2023 and beyond as Tesla continues its mission for sustainable transportation for all!
Looking ahead to 2023, investors can expect more growth from Tesla as it continues to benefit from increased demand for electric vehicles worldwide as well as government incentives that encourage consumers to purchase them instead of gas-powered cars. Additionally, with more efficient production processes and increased capacity due to new factories coming online this year, investors can expect even higher profits from Tesla this year than last year – which could lead to further increases in its stock price over time.
Overall, despite facing some major challenges due to the global pandemic and bear market, Tesla managed not only to survive but thrive during this period – setting itself up for even greater success going forward into 2023 and beyond. With the increasing demand for electric vehicles worldwide coupled with government incentives encouraging their purchase along with improved production processes leading to lower costs associated with producing them – there is no doubt that investors should be bullish on Tesla going forward into 2023 and beyond!
From a technical point of view, there are multiple signs which show that the bear market for Tesla might be over. Right after the earnings report, Tesla spiked significantly to $180.70 per share, which is over 65% from its bottom in January. Such a move needs to be sustainable, which means that in the next few weeks, traders need to keep an eye on any geopolitical headwinds which may have a drag on the global market.
