Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Tesla up over 7% in premarket as upbeat Musk reassures on 2023 outlook

Stock Markets Jan 26, 2023 05:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Tesla (TSLA) delivers Q4 beat on 37% surge in revenue
 
TSLA
+0.91%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith

Investing.com -- Tesla (NASDAQ:TSLA) stock gained over 7% in premarket trading on Thursday after the electric vehicle maker insisted that there's no problem with demand for its cars, and forecast another year of solid - if slightly slower - growth.

Tesla reported underlying earnings per share of $1.19 in the fourth quarter, a little ahead of the $1.15 consensus, which had been revised down sharply at the end of last year as the company struggled with production and logistics disruptions at its plant in Shanghai. Such problems were partly responsible for the company's revenue falling slightly short of market estimates at only $24.32 billion.

More importantly, chief executive Elon Musk told in an analyst call after the release that the price cuts announced earlier this month have had a clear impact on demand, which he said is now running at double Tesla's current production capacity.

Tesla had cut prices for most of its cars by as much as 20% earlier in January, a move that reflects increased competition and problems with affordability, as consumers around the world struggle with the highest inflation in decades.

The price cuts were amplified by the fact that they brought some of its models below the price threshold required to qualify for federal subsidies introduced by the Biden administration last year. Lower prices increase the pressure on Tesla's operating margins, which fell to 16% in the fourth quarter. Musk nonetheless forecast that the operating margin in its core auto sales business would remain over 20% this year, well above industry averages.

"Given the heightened focus on the implications of recent price-cuts on demand and gross margins, management’s commentary will likely be met with some relief as it injects some much-needed visibility," said analysts at Citigroup, who raised their price target for the stock to $146 from $137 on the back of the news.

One negative takeaway from the conference call was Musk's forecast for the current year, which at 1.8 million cars was below analysts' forecasts of 1.9M and also represents a clear shortfall versus its target of 50% annual growth.

Musk didn't specify whether he was talking about production or deliveries.

By 05:26 ET (10:26 GMT), Tesla stock was up 7.1% in premarket trading, on course for its highest opening in over a month.

Tesla up over 7% in premarket as upbeat Musk reassures on 2023 outlook
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (16)
Tyrone Jackson
Tyrone Jackson Jan 26, 2023 10:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
CANOO - ticker goev iss worth a look Penny stock that could 10x’s in the next 24 months
ZS Beck
ZS Beck Jan 26, 2023 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He needs money . Trying to sell some stock .Twitter est up he’s saving account .
gab nea
gab nea Jan 26, 2023 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is the pump, just watch out for the dump! musk cannot be trusted any longer, since getting twit distracted!
Meme Youyou
Meme Youyou Jan 26, 2023 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sure…
Tyrone Jackson
Tyrone Jackson Jan 26, 2023 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Triggered gab?
Abolish The Fed
Abolish The Fed Jan 26, 2023 7:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla is the Enron of the 2020s
Dennis Ng
Dennis Ng Jan 26, 2023 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everytime Musk talks up Tesla there is always a big drop after...
Aris Deltona
Aris Deltona Jan 26, 2023 6:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
EPS was 50%+ lower than the one 2021's Q4... Margin is dropping, subsidies in China are over and you still believe it is a good investment...? Ok whatever...
Thomas Bjerre Kristiansen
Thomas Bjerre Kristiansen Jan 26, 2023 6:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Q1 '21 EPS was 0,69. you got your math wrong mate
Victor Cuello
Victor Cuello Jan 26, 2023 6:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$$$ this stock will be a millionaire maker all over again
Mathew Stoneheim
Mathew Stoneheim Jan 26, 2023 5:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Production growth from Q4 2020 is 145%, yet two years ago company was valued 70% higher.
Luke Knoep
Luke Knoep Jan 26, 2023 5:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its not a secret Tesla was overvalued two years ago
Jay Garrelts
Jay Garrelts Jan 26, 2023 1:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I just finished converting all electrical appliances to petroleum my tv is smoking
Tommy Rommazontz
Tommy Rommazontz Jan 25, 2023 11:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla has not hit bottom yet. how do I know ? for i am the mighty Rommazontz.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email