Important events
Jul 182023
TSLA: Tesla Finally Kicks Off Cybertruck Production. Stock Gains 3.2% to Fresh 2023 High.
Shares of the EV maker have soared this year, adding more than 160% to Tesla’s valuation.- The first unit of Tesla’s new electric pickup truck rolled off the assembly line this weekend. The highly anticipated Cybertruck was first introduced in 2019, and here we are – four years later you can get one starting from $39,900. A high-end make will set you back roughly $70,000.
- Boasting a futuristic look, or an odd shape if you’re in the critics camp, the Cybertruck is expected to usher in a new era of growth in the EV market. Wall Street analysts target roughly 10,000 units to be delivered in 2023, and ten times that amount in 2024. Cybertruck joins Tesla’s existing models S, 3, X, Y.
- Tesla stock (ticker: TSLA) gained 3.2% on Monday. Shares of the EV heavyweight, led by billionaire Elon Musk, closed above $290 a share, lifting the company’s market value above the $900bn mark for the first time since September. Tesla stock is riding on more than 160% in year-to-date gains.
Illustration by TradingView
Jul 042023
TSLA: Tesla Stock Adds 6.9% on Blowout Deliveries, Far Above Expectations
The EV kingpin extended its powerful rally after it reported 466,000 cars delivered, a record quarterly figure.- Tesla stock (ticker: TSLA) jumped a hefty 6.9% in Monday’s shortened trading session. Global deliveries for the EV maker surged by a solid 83% in the second quarter, fueled by price cuts and discounts, observed broadly in the competitive EV field. The stock closed at $279.82 a share and sits on roughly 160% return for the year.
- The electric-car manufacturer, led by billionaire Elon Musk, reported it delivered more than 466,000 vehicles to customers globally for the quarter ended June. It’s a record quarterly figure for Tesla, and a comfortable beat of expectations for 445,000 cars shipped to buyers.
- The next big report is slated for July 19 when Tesla drops its financial results for the latest quarter. The report will show whether Musk’s efforts to lure in buyers by low prices has affected the profit trajectory. In the first quarter, Tesla’s operating margin fell 11.4% on an annualized basis.
Tommy van Kessel / Unsplash
Jun 292023
TSLA: Tesla Stock Rises 2.4% as Q2 Delivery Numbers Approach, Analysts Eye 445,000
Investors also praised what looks like winning the charging wars – Volvo joins Ford and GM in accessing Tesla’s supercharger network.- Tesla stock (ticker: TSLA) jumped 2.4% on Wednesday as buyers cheered another set of good news and some lofty expectations. First off, Tesla’s delivery numbers for the second quarter are just around the corner. Over the weekend, investors will be eyeballing 445,000 new cars shipped to happy owners, up from roughly 423,000 in the prior quarter.
- What’s more, Elon Musk’s EV maker struck another big partnership. Starting in 2025, Volvo drivers will get access to Tesla’s supercharger network spanning across the US. The Swedish carmaker, owned by Chinese group Geely, joins Ford and General Motors in using Tesla’s network of 12,000 superchargers.
- Tesla shares have been on a tear this year. The company has sparked a rally that has so far returned a roughly 140% increase since early January. In value terms, Tesla is sitting on an $800bn market cap but is still some $400bn away from its record-high market cap hit in November 2021.
Saketh Garuda / Unsplash
Jun 222023
TSLA: Tesla Stock Tumbles 5% After Barclays Downgrades and Slams Recent Run
Tesla’s monster rally hit a roadblock yesterday after Barclays warned the EV maker is riding mostly on AI hype.- Tesla shares (ticker: TSLA) lost 5.49% on Wednesday after a Barclays analyst, Dan Levy, downgraded the EV giant’s stock to Hold from Buy, saying fundamentals have been ignored. The commentary, however, raised the share price target to $260 from $220 prior. Tesla closed the day at $259.46 and is down a further 1% in pre-market today.
- It’s likely true that Tesla’s epic pumps were never inspired by fundamentals. Instead, it’s meme stocks and rocket ships and the prospects that Tesla’s slick rides will dominate the car market in the US. Now we’ve got AI hype driving the narrative for the Elon Musk-led car company’s stock market adventures.
- As a tech company that is way more than just an EV maker (a humanoid robot called Optimus is in the works), investors are betting that Elon Musk will not miss the chance to leave his footprint in the AI space. After all, Tesla uses AI to train its self-driving technology.
Manny Becerra / Unsplash
Jun 162023
TSLA: Experts Think That Tesla’s 62% US EV Market Share Could be in Trouble
- Bank of America believes that Tesla’s US EV market share will be reduced significantly over the next 3 years.
- Competitors such as Ford are expected to threaten Tesla’s market dominance with cheaper EV offerings.
- Since the start of the year, Tesla’s share price has been on a rally – more than doubling since it began.
Experts at Bank of America have suggested that the 62% market share of the US electric vehicle market could soon be set to shrink significantly as other brands move more aggressively into the space. Over the next three years, the bank has suggested that the musk-led EV company’s market share could be reduced to as little as 18% due to competitors such as Ford ramping up their EV offerings, and reducing the cost of purchasing an EV. GM’s market share is also expected to grow significantly over the same period.
In terms of share price, Tesla has been on a roll in 2023 – TSLA has doubled in value since the start of the year and is currently sitting in the region of $256 per share. Even since the beginning of the month its share price has risen by more than 25%, after having suffered heavy losses in the second half of 2022. As for where the rest of the year will take it, analysts are fairly confident that there could be more upside to come this year for the EV brand.
(About Tesla)
Tesla, founded by Elon Musk in 2003, is a pioneering American electric vehicle (EV) and clean energy company. Tesla's flagship product is its line of electric vehicles, which have gained immense popularity for their impressive performance, extended range, and sleek designs. Models like the Tesla Model S, Model 3, Model X, and Model Y have redefined the perception of electric cars, proving that they can be both environmentally friendly and technologically advanced. Beyond electric vehicles, Tesla is actively involved in the development of sustainable energy solutions. The company produces energy storage products like the Powerwall and Powerpack, which enable homes and businesses to store renewable energy for later use.
Manny Becerra / Unsplash
Jun 092023
TSLA: Tesla Stock Adds $70bn to Valuation on Cybertruck, Gigafactory Rumors
The electric carmaker’s market cap is nearing $750bn as investors amp up excitement. Watts the buzz about?- Tesla is on the run again. The Elon Musk-led EV giant saw its stock (ticker: TSLA) advance nearly 5% on Thursday on news that as many as 375,000 Cybertrucks may be produced a year – more than the 100,000 anticipated by analysts. Further, rumors for a planned Gigafactory in Spain helped send the stock another 5% in after-hours trading.
- Is Tesla stock back at the electrifying returns? After closing its 10th straight session in the green yesterday, the EV maker is drawing closer to a $750bn market cap. Refresher: Tesla was the first automaker in history to cross the $1tn valuation mark. Then the wheels fell off and the EV kingpin lost 72% of its worth.
- Tesla stock, a crown jewel in the Reddit stocks corner, stays true to its retail-inspired trading and frolic behavior. Shares are up 13% in June alone, and more than 110% for the year. But the stock is still some 40% away from its all-time high of $410 a share.
Tesla
May 172023
TSLA: Tesla to Try “a Little Advertising” in Shift from Decades-Long No-Ad Policy
Tesla CEO Elon Musk told shareholders “advertising is awesome” as the carmaker struggles with rising competition.- Tesla just wrapped up its annual shareholder meeting and the biggest takeaway wasn’t Elon Musk’s expansion plans, Twitter succession, or upcoming products. It was ads. The eccentric billionaire and meme lord hyped up Tesla shareholders with a simple “we’ll try a little advertising and see how it goes.”
- The news flashed mixed signals and here’s how you break it down. Tesla never ran any ads and always eschewed conventional marketing simply because demand always exceeded supply. But that was the case because Tesla was a small automaker and wasn’t churning out hundreds of thousands of cars every quarter.
- In that light, the move to advertise could be seen as a testament that the bigger you get, the harder it is to sell out. And, if you are Tesla, the easier it gets to act more like a traditional company. Tesla stock (ticker: TSLA) is up just over 1% in off-hours trading and is riding on a 55% gain year-to-date.
Scott Jordan / Flickr
May 152023
TSLA: Tesla Stock Flickers After 1.1mn Cars in China Need to be Recalled
A breaking issue is behind the latest stock slide. But at least it could be fixed with an over-the-air update.- Tesla shares (ticker: TSLA) dropped 2.4% to close the week in negative territory. The EV giant will need to recall 1.1mn of its cars sold in China, or virtually every car sold from 2019 to April 2023. The reason being – Chinese regulators said they have discovered a breaking issue.
- To be fair, a recall is a bit of a stretch. And that’s why the stock didn’t go into full-on bear mode. Tesla will push an over-the-air software update that will allow drivers to turn off regenerative braking. The system will also be tweaked to flash a warning sign when the accelerator is pinned down hard.
- China is a key market for Tesla. Competition is running hot and local rivals such as BYD are already blowing past the EV kingpin on the sales front. Last year, the Elon Musk-led automaker picked up revenue of $18.2bn from selling its production to Chinese customers.
Paul Steuber / Unsplash
Apr 202023
TSLA: Tesla’s Q1 Report Fails to Impress, Shares Drop by 7%
- Tesla’s Q1 report showed its net income to have fallen by 24% from the year prior.
- Its revenue, however, managed to beat analysts expectations at $23.33bn against estimates of $23.21bn.
- Tesla Energy unit also saw its revenues soar by almost 150% compared to last year.
Tesla has announced its Q1 2023 report, which had investors thinking that this year might not be as smooth a ride for the EV maker as expected. The company reported earnings per share which matched expectations at $0.85 per share. Its revenue for the quarter even managed to beat analyst expectations with $23.33bn against estimates of $23.21bn. The news caused TSLA to drop by over 7% today.
The bad news however, was the company’s net income. Tesla reported it to be $2.51bn – marking a decline of 24% from the year prior. The company stated that the cause of the drop was the fact that its new factories are not being fully utilized, in addition to the rising cost of the materials involved in production.
What’s Tesla doing to turn it around?
So far, Tesla’s main strategy to improve its profitability is enacting price reductions on the cost of its vehicles. Having already implemented price cuts in the US last year, this week Tesla implemented its 6th price cut this year – meaning the base model Y has had prices slashed by 20% since the year began. The company’s sales are also still looking fairly strong, even if rising production costs are putting strain on profitability.
Musk also reiterated that uncertainty surrounding macroeconomic factors are also putting strain on the company’s operations – referring to the year ahead as “stormy weather”. Tesla also logged a drop in its revenue generated from environmental credits compared to last year.
Was there any good news for Tesla?
Tesla’s energy unit saw revenues skyrocket by almost 150% YoY, reaching $1.51bn. The company's solar panels and energy storage systems have been in high demand, contributing significantly to its revenue growth. As for its auto business, shareholders are hoping that Tesla’s price cuts will be enough to turn it around.
(About Tesla)
Tesla is an American electric vehicle and clean energy company founded in 2003 by entrepreneur Elon Musk. The company is headquartered in Palo Alto, California and operates in more than 50 countries worldwide. Tesla is known for its innovative electric cars. The company's flagship vehicle, the Model S sedan, was introduced in 2012 and quickly gained popularity. Tesla has since expanded its product lineup to include the Model X SUV, the Model 3 sedan, and the Model Y crossover. The company also produces solar panels and energy storage products, which are designed to help customers reduce their carbon footprint and transition to clean energy sources.
Afif Ramdhasuma / Unsplash
Apr 032023
TSLA: Tesla Tops Vehicle Deliveries in a Record Quarter
Shares of the EV maker are up almost double year-to-date, boasting a 92% rise.- Tesla posted its delivery figures for the first quarter, surprising analysts with record-high figures. The electric-car maker shipped 422,875 vehicles, and produced 440,808 units. Both numbers are quarterly records. Wall Street was looking for just about 420,000 deliveries.
- The Q1 deliveries were 36% higher compared to the 310,048 cars shipped in the year-ago quarter. The Model 3 and the Model Y accounted for 412,180 units, while 10,695 units of the higher-priced Model S and X were delivered to people around the globe.
- Tesla needed strong quarterly performance to back up the monster rally in its shares. Over the first three months, Tesla’s stock is up roughly 92%, boasting some of the loftiest gains in the equity market. It’s Tesla’s sixth best quarter share-wise, out of 51 quarters of trading.
Austin Ramsey / Unsplash
Mar 072023
TSLA: Tesla Expands its Price Cuts in the US
- Tesla has announced price cuts to some of its EV models in the US.
- It hopes that the reduced price tags can restore slipping demand in the market.
- The reduced prices could allow the vehicles to qualify for US tax credits.
After lowering the cost of its EV models in China proved to be a positive move for sales in the region, Tesla is hoping that the same magic can be applied in the US market. With inflation rates making customers less willing to part ways with their cash, steps need to be taken to fire up demand for the Musk-made vehicles.
What has Tesla done?
The price of the Tesla Model S and Model X (two of the most expensive models the manufacturer offers) will reportedly be reduced by 5% and 9% respectively in the US. It comes after Ford already reduced the cost of its EV truck by 8% after Tesla’s price reductions in China. The EV giant is reportedly also investing in means of producing electric vehicles without the need for rare earth metals – a requirement of electric motors which often elevates their price.
What’s prompted the move?
Some believe that the decision is likely related to Biden’s newly implemented Inflation Reduction Act, as the lowered prices could allow tax credits to be used towards purchasing new vehicles. Some analysts have also said that Tesla is in a strong position to make price cuts such as these, due to its robust margins in comparison to its competitors. With its share price up 63% YTD after a difficult 2022, it could be moving from a strong position to a stronger one.
Tesla
Mar 012023
Tesla’s Investor Day is Here and Things May Get Wild
Cheaper EV model, robotaxis, and a new Master Plan are expected by analysts at today’s event.- Today is Investor Day for Tesla and all the geeks are feeling giddy for what’s to come. In the list of expectations is a new plan for Tesla’s future, one that is likely to highlight steps to extreme-size expansion. Also, a brand-new EV model priced under $30,000, and some robotaxis.
- Tesla’s recent run, however, is putting the stock at a vulnerable spot ahead, during, and after the event. Shares of Elon Musk’s EV maker are up over 90% so far in 2023 – enough to return the meme king and Dogecoin lover to the #1 spot among the world’s wealthiest.
- With these lofty expectations pinned to the event, an underwhelming delivery might trip investors, pushing Tesla’s volatile stock on a slippery slope. If so, short sellers may get a field day, turning this Investors Day event into a sell-the-news event. So beware - stock may go for a ride in either direction.
Tesla
Feb 202023
Tesla stock unstoppable
The EV company’s shares rallied despite warnings from regulators.- Tesla shares ended their sixth straight week of gains, marking a rare spot of green across the board. The electric-car maker ended the past five trading sessions with more than 7% added to its market cap, which now hovers right above the $650bn threshold.
- Market optimism was strong enough to push through a regulatory warning over crash risks. The notice led to the recalling of 362,800 Tesla vehicles equipped with the Full Self-Driving Beta, a fancy high-profile driver assistance tech. To fix it, Tesla would deploy an over-the-air software update.
- Tesla is without a doubt one of this year’s biggest winners. Its stock has soared more than 90% year-to-date. But ownership over the shares is shifting – passive funds BlackRock, Vanguard, and State Street own a combined 13.58% of Tesla, topping Elon Musk’s 13.42% stake.
Andreas Dress / Unsplash
Jan 262023
Tesla shows it still has charge
Tesla’s earnings beat has shown that despite rising electricity prices and lowered demand – EVs are still in.- Tesla has announced its Q4 earnings results which surpassed analyst expectations. The Musk-led EV giant reported earnings to have beaten predictions of $1.13 per share with $1.19, and also beat revenue expectations of $24.16bn with $24.32bn reported. Its automotive revenue came in at $21.3bn – marking a 33% increase from the same quarter a year ago.
- The positive results were in part due to the price of its electric vehicles being slashed in 2022 – a move which seems to have done wonders for Tesla’s sales. Musk said on a call with shareholders that during this month, the company had seen the best orders YTD in its history. People can’t resist a deal, it would seem.
- Tesla’s also ramping up production at its factories for the coming year – which has some analysts confused as to why the EV giant hasn’t increased its production target to match. Musk’s justification was that unforeseen circumstances could interrupt its production levels. Though with its share price up by 33% YTD, Tesla looks ready to shake off the slump.
Charlie Deets / Unsplash
Jan 162023
An electric recession?
Tesla’s recently announced price cuts might help Tesla, but they aren't doing the electric vehicle market any favors.- Tesla announced on Friday that it will be cutting prices on its electric cars in the US and Europe, as it attempts to revitalize its sales after seeing disappointing full-year delivery numbers. The move might entice potential customers, and could allow the company to qualify for additional EV tax credits.
- The price cuts, however, are putting pressure on smaller EV makers, which are already having to cope with skyrocketing electricity prices and more cautious consumer spending habits. Tesla competitors Rivian, Lucid Group and Fisker were all sliding down last week – dropping by 6.4%, 2% and 9.7% respectively on Friday.
- Last year saw US car sales reach their lowest level in a decade, as fears of a recession in 2023 continue to circulate. Analysts reckon that Tesla’s size means it would be able to weather a recession, but whether its smaller competitors will be able to grow quickly enough to survive remains to be seen. It’s another in the long list of industries feeling the squeeze right now.
Manny Becerra / Unsplash
Jan 032023
Back in the driver's seat?
After a tough 2022, Tesla has reported some promising stats on vehicle deliveries – but is it enough to convince investors?- Tesla has reported that its vehicle deliveries reached 1.31m over 2022, marking a 40% increase in deliveries compared to last year. It’s also made 2022 Tesla’s best ever year for deliveries, which are the closest thing to sales that the EV maker discloses.
- Despite the impressive annual growth, Q4 deliveries came in short of expectations. Analysts had expected 427k deliveries for the quarter, with the real figure only reaching just over 405k.
- Tesla share price plummeted by almost 65% over 2022, and analysts warned last month that weakening demand for electric vehicles will continue to put pressure on the company. With Musk himself selling billions in Tesla shares last year, confidence in the EV brand is looking shaky.
Unsplash
Dec 222022
A 12-month low
Elon Musk has come on record to explain Tesla’s recent underperformance. Whether it will help its share price, is another question.- Shares in Tesla have tanked by almost 21% over the past month to a new 12-month low, and Musk has offered an explanation as to why. Elon’s pulled out the old “macroeconomic factors” card, but investors are having a hard time buying it.
- Tesla has seen a 52% drop since April, but the downfall hasn’t been seen in some of its competitors. By comparison, shares in Ford and GM have only fallen by 26% and 12% respectively over the same period of time.
- The situation has become severe enough for the company to offer incentive schemes and discounts in the Chinese market in an effort to boost its dwindling sales. Skyrocketing electricity prices have also weighed on the appeal of EV ownership in Europe.
Thomas Wasper / Flickr
Dec 142022
A brand on collision course?
Tesla stock has been sliding down the charts recently, and a new survey has granted some insight into why.- Shares in Tesla fell by 4% yesterday and are down by 10% since the start of the week, as confidence in the brand seems to be in decline. An opinion poll released by YouGov showed that fewer than 40% of Americans who have heard of the brand think it’s a good company. It’s probably hurt old Elon’s feelings, who’s already dealing with losing his crown as the world’s richest person.
- An opinion poll might not sound like damning evidence, but it’s a bigger problem than you might think. Tesla is hugely popular amongst retail investors – making up approximately 10% of the average retail investment portfolio. As a result, general perception of the company can have a major impact on the share price.
- Tesla’s taken a beating in 2022 – more than halving in value since the year began. Aside from that, it’s also had to deal with a criminal investigation into its “self-driving” vehicle claims, which was filed in October. Musk might have to work some of his magic to stop the company from veering off the road.
Szymon Kita/ Unsplash
Dec 062022
Just trucking along
Tesla finally releases its loooooooong-anticipated electric truck, but should the brand be focusing on demand problems instead?- Tesla shares dropped 6.3% on Monday as reports began swirling that the EV giant has plans to cut production at its Shanghai plant – a major source of production and a designated export hub. Rumor has it the brand could cut production by over 20% from the month before.
- It got investors worried that demand in China could be a cause for concern. It’s one of Tesla’s biggest markets, and recent price cuts and offered incentives like insurance subsidies have already got it in people’s heads that demand isn’t keeping up with the increased supply that came with a recent increase in capacity at the plant.
- At least Tesla has at last made progress on the truck front, five long years after first announcing the product – Elon Musk revealed the production-ready fully-electric Semi Truck, handing the first few models to Pepsi. How the CEO found time to do that while also banning Kanye from Twitter and using a brain-chip on a monkey is anyone’s guess.
Tesla
Nov 222022
Total Recall
Tesla stock is reversing deeper and deeper into the mud slide as investors contemplate back-to-back recalls and a distracted CEO.- Tesla shares hit a fresh two-year low on Monday, sinking nearly 7% to take its November losses to over 26% – now its worst month on record. Ouch. The reasons for this month’s decline are similar to those dragging the stock down most of the year, with a few new twists in the gut for both the brand and its CEO.
- The products themselves have faced a few setbacks. The first was a double recall that will affect over 350k vehicles in total, though there was a bit of headline hyping here given the updates can take place over the air. The second was reports of the first covid deaths in China in over 6 months – it's a key production region for Tesla so lockdowns will mean lower deliveries.
- Investors also worry that CEO Musk is too distracted to give Tesla the TLC it clearly needs – even though Elon himself has lost over $100bn in wealth this year bc of falling prices. Musk has also sold about $19bn of Tesla stock in 2022 for his Twitter purchase, a buy that continues to make headlines for firings, resignations, scary emails, and controversial account comebacks from the likes of Trump and Kanye.
Charlota Blunarova / Unsplash