Connect with us

Hi, what are you looking for?

Image courtesy of Brendan Miles


Strong Tesla Profits & Demand Boost Tesla Bull Outlooks, But Concerns Linger

Following what many considered a rough 2022 for Tesla, investors are warming up to the idea of a big 2023 for the automaker, especially after the company’s recent quarterly earnings call. With Tesla’s strong profits heading ending 2022, and new expansions and production plans set to begin this year, some bulls are doubling down on their support for the automaker’s stock.

Tesla’s stock prices rose following the company’s fourth-quarter earnings report, despite continually increasing competition and a number of other barriers, as The New York Times reports. At the time of writing, Tesla’s shares have increased by about 33% since the beginning of January, a welcome surprise for shareholders who watched the company drop $685 billion in market value in 2022 for a 65% drop-off.

In the fourth quarter, Tesla saw a 59% increase in quarterly profit year over year. Additionally, the earnings call showed rising demand for Tesla’s vehicles, despite swirling concerns surrounding the subject in recent months. All in all, the call had a lot of good news for investors.

Still, The New York Times points to a handful of other factors surrounding the company that may present some challenges to its growth. As just a couple of examples, rising interest rates have already been a challenge for the company, and increased competition from legacy automakers could threaten the automaker’s currently dominant market share in the electric vehicle sector.

The publication also points out significant EV sales at more affordable prices coming from Ford, GM, Hyundai, and Volkswagen, along with a strong start in the EV sector from China’s BYD. Cybertruck production will also take until 2024 to reach volume production, while EV pickup sellers Ford and Rivian take the early lead with the F-150 Lightning and the R1T.

During the earnings call, however, Tesla also touted its impressive $3.7 billion in profit and $21.3 billion in car sales on the quarter as proof that its strategy is working. Concerns around demand have largely disappeared with the automaker’s sweeping price cuts in recent weeks, which are even putting pressure on other EV automakers.

Tesla bull and Morgan Stanley analyst Adam Jonas called Tesla his top pick amongst all car stocks for 2023, and the company has remained one of the best performers on the S&P 500 so far this year. While it’s impossible to predict what could happen to Tesla’s stock in the coming months and years, especially given the aforementioned risks, recent profits have some shareholders sticking to their long-term bullishness.

Originally posted on EVANNEXWritten by Peter McGuthrie.

Related Story: Tesla Could Be The Top US Vehicle Seller By The End Of Next Year

Disclosure: Nothing above is financial or investment advice of any kind. We do not provide financial or investment advice here on CleanTechnica.

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.


You May Also Like

Clean Transport

Elon Musk spent much of last year selling off Tesla stock, though he remains the company’s largest individual stakeholder. However, despite a disdain for...


1 in 4 new passenger vehicles in France had a plug in February.


Most people considering an electric vehicle are most worried about running out of charge and being stranded. Basically, they premature anxiety about what is...


When it comes to charging, many owners charge their Teslas at home. But when you’re out on a road trip or you simply need...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.