Tesla Stock (NASDAQ:TSLA)
Investors in Tesla (NASDAQ:TSLA) are accustomed to volatile market swings. Yet, 2023 has been a more unpredictable year than normal, and as a result, the upcoming first-quarter delivery number from the leader in electric vehicles is more crucial than it has ever been.
Tesla shares (NASDAQ:TSLA) increased by around 54% in 2023 prior to the opening of trading on Wednesday. There are still a handful of trading days remaining in the quarter. The beginning of this year has gotten off to Tesla stock’s most successful start ever. The year 2014 comes in second place with a rise in share prices of more than 41% from the beginning of the year and the end of March.
During the most recent trading session, the price of a share of Tesla rose 1.3% to $191.65. Both the S&P 500 SPX +1.01% and the Nasdaq Composite were able to achieve gains of 0.9% and 0.6%, respectively.
If you had asked investors what they thought the likelihood of something happening on January 3, they most likely would not have guessed that something would happen. When the company’s fourth-quarter deliveries fell short of projections, Tesla’s share price experienced its worst trading opening day of any year in 2023, falling 12.2%.
Over 405,000 automobiles had been delivered by Tesla. Wall Street was interested in purchasing approximately 420,000 units.
The disappointment that occurred on January 3 occurred after Tesla stock experienced its worst year ever in 2022, falling 65%. The year 2016 came in second with a decline of around 11% in shares.
Due to the upside-down beginning of the year 2023, the next delivery outcome is of utmost significance for investors. The second business day of each quarter is when Tesla normally releases its quarterly delivery report. This time around, that would be on the Sunday the 2nd of April. The expectations of Wall Street are for approximately 420,000 units, which would be a record for the company. This would represent an increase of approximately 4% when compared with the previous quarter and an increase of approximately 35% when compared to the previous year.
Wedbush analyst Dan Ives said on Wednesday that all eyes on Wall Street are focused on how well demand is holding up for Musk & Company despite the uncertain macroeconomic environment. “It is quite clear that ever since the Model Y/3 price cuts were put into effect earlier this year, demand has been brisk over the course of the 1st Quarter.”
In January, Tesla made price reductions all over the world, which, according to the firm, contributed to an increase in the amount of order activity. According to Ives, Tesla is capable of delivering approximately 430,000 units, which is higher than the general consensus.
He has a Buy rating on Tesla shares and is a Tesla bull. His objective price for each share is $220. Gordon Johnson, an analyst with GLJ Research, has been bearish on Tesla for a long time. He recommends selling the shares and sets a price objective of $24.33 for the stock.
Johnson believes that Tesla will surpass the 420,000 deliveries that are expected, ultimately delivering 425,000 vehicles. But, he is worried that lowering prices is an indication that demand is falling, and that this would result in profits that are lower than planned in 2023 and beyond. He believes this will happen because demand is falling.
Tesla stock often trades strongly after a beat, and shareholders’ holdings have outperformed the market approximately 70% of the time over the period beginning immediately after the delivery results and ending immediately before reporting quarterly profits.
Yet, that is not what took place in the year 2023. The company did not meet the expected level of delivery, and as a result, the stock price increased by almost 34 percent between January 3 and the day right before the results were released on January 25. At the same time period, the S&P 500 index increased its value by approximately 4%.
The Company’s Focus on Innovation Is Vital to Its Success
Tesla has long been recognized as a leader in technological innovation, and their most recent delivery result is not an exception to this rule. Autopilot, regenerative braking, and immediate torque are just some of the cutting-edge technologies that can be found on the company’s electric vehicles, making them among the most cutting-edge on the market today.
Not only do these technologies make Tesla’s automobiles more fuel-efficient and kind to the environment, but they also deliver an improved driving experience to the company’s customers. As a consequence of this, Tesla has established itself as the leader in the market for electric vehicles, and it continues to push the frontiers of what is possible with respect to environmentally friendly transportation.
Tesla Places a High Priority on Environmental Responsibility
Another important contributor to Tesla’s success is the company’s dedication to environmental preservation. Both in the process of their manufacture as well as in the use of their vehicles, the corporation has made a concerted effort to cut down on the amount of carbon footprint they leave behind.
The fact that Tesla’s electric vehicles don’t release any pollutants makes them a compelling choice for customers who are interested in minimizing their negative effects on the environment. In order to further lessen their impact on the environment, the company has begun powering its manufacturing facilities with renewable energy sources such as solar panels and wind turbines.
Go figure. Because of this, predicting the response of the stock market to the results of the first quarter is difficult. It is anticipated that a population of approximately 425,000 will be sufficient to maintain order, at least for the next few days.
Katie Stockton, the founder of Fairlead Strategies, thinks that Tesla share prices need to maintain a level of $185 following the delivery results, or else they could drop as low as $160. Stockton studies the patterns on a stock’s chart to get a feel for how the price of the stock may respond to changes in fundamental data. She goes on to say that if everything works out as planned, the price of Tesla shares might reach approximately $215 in the short run.
Featured Image: Pexels @ Craig Adderley
