After its severe beatdown in 2022, Tesla stock (NASDAQ:TSLA) seems intent on coming back with a vengeance. Considering TSLA’s behavior on Thursday’s premarket, the electric vehicle maker seems poised to double the price of its January 2023 lows.
On Thursday’s premarket, Tesla shares rose by as much as 4.1% to $209.50 per share. This represents a 106% gain from the stock’s January 6 intraday trough. The positive sentiments surrounding Tesla stock may partly be due to the strong demand for the company’s vehicles, which were highlighted by Elon Musk and other Tesla executives during the Q4 and FY 2022 earnings call.
Tesla’s strong demand was boosted in January following the company’s price cuts for its entire vehicle lineup, including best-sellers like the Model 3 sedan and the Model Y crossover. Tesla’s Q4 and FY 2022 results were also better than expected, with the company achieving its highest-ever revenue to date.
In a comment to Bloomberg News, Eric Schiffer, chief executive officer of Los Angeles-based Patriarch Organization, shared a comment about the electric vehicle maker’s rapid rise. “Tesla is rising so fast because of a market that believes the Fed is coming to the rescue,” he said, adding that the surge in TSLA was also due to good Q4 results and the company’s price cuts.
Marco Iachini, senior vice president of research at Vanda Securities, highlighted that Tesla is becoming a favorite of retail investors this year. “Tesla has definitely been the main target of retail buying so far this year,” Iachini said.
Despite its recent rise, and even if TSLA shares end up doubling from its January lows by the end of Thursday’s trading, the electric vehicle maker still has some ways to go before it can recover from its overall losses last year. Tesla shares dropped a steep 65% in 2022, after all, thanks in part to Elon Musk’s offloading of TSLA stock to fund his Twitter acquisition.
Disclosure: I am long TSLA.
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