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Investor's Corner

Tesla stock rebounds 50 percent in less than one month in 2023

Credit: Tesla Inc.

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Tesla stock (NASDAQ: TSLA) is up 50 percent less than a month into 2023. The spike in the company’s stock price follows a sharp downturn that occurred in 2022.

Last year, Tesla stock fell sharply, losing over 60 percent of its value. Due to widespread unfavorable conditions in the tech and automotive sectors, Tesla felt the losses due to increased vehicle prices, delays in some company products, and CEO Elon Musk’s acquisition of Twitter.

It was a challenging year for Tesla bulls as their portfolios continued to get hammered by the drops. Patience has paid off, and Tesla stock is rebounding nicely in 2023.

Tesla had already spiked 36 percent on the year before the company’s Q4 and Full Year 2022 Earnings Call on Wednesday. The company reported a strong showing by beating EPS estimates and narrowly missing revenue predictions from Wall Street. Tesla shares pushed themselves up nearly 10 percent before the opening bell on Thursday.

The stock opened at $159.96 today and is up over 3 percent a 9:55 AM on the East Coast.

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Tesla’s massive price cuts in early January, which saw vehicles re-enter affordability for many American car buyers, helped the stock begin to rebound. Data showed both the Model 3 and Model Y had significantly increased addressable markets due to the price reductions. When combined with the Inflation Reduction Act tax credits, buyers could see discounts of more than $20,000.

Tesla reported several exciting developments during the Earnings Call, including a rough start date for the Cybertruck and hints toward an expansive product lineup.

“It was a fantastic year for Tesla. It was our best year ever on every level,” CEO Elon Musk said.

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Disclosure: Joey Klender is a TSLA Shareholder.

Please email me at joey@teslarati.com with questions, comments, or concerns.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Elon Musk

Tesla sits at a ‘crossroads,’ Wedbush says by listing six negatives

Wedbush is still bullish on Tesla, but says Elon Musk needs to make a choice between DOGE and the car company.

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Credit: Tesla

According to Wedbush, Tesla is sitting at a “crossroads” as it nears its Q1 2025 Earnings Call on Tuesday.

Although the company’s Earnings Calls have been primarily focused on the financials and accomplishments of the past quarter, Tesla is approaching this one differently.

Tesla has even said that this Earnings Call will feature a “company update,” and as most believe it will detail plans for future models and production timelines, others have different expectations and beliefs over what could be said.

Tesla still on track to release more affordable models in 1H25

Wedbush’s Dan Ives believes Tesla is at a crossroads and outlined his six biggest concerns for the company since CEO Elon Musk took on a role within the White House at the Department of Government Efficiency (DOGE):

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  1. Tesla has now unfortunately become a political symbol globally of the Trump Administration/DOGE
  2. Tesla’s stock has been crushed since Trump stepped back into the White House
  3. Brand damage to Musk/Tesla resulted in a terrible 1Q delivery number, with much lower 2025 deliveries on the horizon
  4. Protests and violence against Tesla dealerships/owners have erupted around the globe
  5. 25% auto tariffs have been enacted, delaying future lower-cost models for Tesla, even though Musk is vocally against the tariffs for obvious reasons
  6. Potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE

Ives has held onto the idea that Musk’s involvement has made Tesla synonymous with the Trump administration, but that only seems to be true for those who share ideologies that oppose what the White House is doing.

Others are able to differentiate between the two, noting that Tesla is not a Trump organization, and vice versa.

Of course, there are negative sides to Musk splitting his time between the two and having ties to the President. Politically, it is hard to appease everyone.

Despite this, Wedbush’s Ives said the firm still remains bullish on Tesla:

“So why stay bullish? It’s a great question. We believe Tesla along with Nvidia are two of the most disruptive technology companies on the globe over the coming years. The unparalleled innovation, engineering scale, autonomous roadmap, and robotics future will unleash massive valuation upside over the coming years in our view. BUT….Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time. Tesla is Musk and Musk is Tesla….and anyone that thinks the brand damage Musk has inflicted is not a real thing….spend some time speaking to car buyers in the US, Europe, and Asia…you will think differently after those discussions.”

Ives said that Musk needs to lay out the timing and rollout plans for the unsupervised Full Self-Driving and for the affordable vehicle platform, which was set for release in the first half of the year.

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Investor's Corner

Tesla “best positioned” for Trump tariffs among automakers: analyst

Ives has a price target of $315 per share for the electric vehicle maker.

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Credit: Tesla

Wedbush analyst Dan Ives recently shared his thoughts about Tesla (NASDAQ:TSLA) amidst the Trump administration’s tariffs. As per Ives, Tesla is best-positioned relative to its rivals when it comes to the ongoing tariff issue.

Ives has a price target of $315 per share for the electric vehicle maker.

Best Positioned

During an interview with Yahoo Finance, the segment’s hosts asked about his thoughts on Tesla, especially considering Musk’s work with the Trump administration. Musk has previously stated that the effects of tariffs on Tesla are significant due to parts that are imported from abroad.

“When it comes to the tariff issue, they are actually best positioned relative to the Detroit Big Three and others and obviously foreign automakers. Still impacted, Musk has talked about that, in terms of just auto parts,” Ives stated.

China and Musk

Ives also stated that ultimately, a big factor for Tesla in the coming months may be the Chinese market’s reactions to its tariff war. He also noted that the next few quarters will be pivotal for Tesla considering the brand damage that Elon Musk has incited due to his politics and work with the Trump administration.

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“When it comes to Tesla, I think the worry is where does retaliatory look like in China, in terms of buying domestic. I think that’s something that’s a play. And they have a pivotal six months head, in terms of what everything we see in Austin, autonomous, and the buildout. 

“But the brand issues that Musk self-inflicted is dealing with in terms of demand destruction in Europe and the US. And that’s why this is a key few quarters ahead for Tesla and also for Musk to make, in my opinion, the right decision to take a step back from the administration,” Ives noted.

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Investor's Corner

Tesla negativity “priced into the stock at its current levels:” CFRA analyst

The CFRA analyst has given Tesla a price target of $360 per share.

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Credit: Tesla China

In recent comments to the Schwab Network, CFRA analyst Garrett Nelson stated that a lot of the “negative sentiment towards Tesla (NASDAQ:TSLA) is priced into the stock at its current levels.”

The CFRA analyst has given Tesla a price target of $360 per share.

Q1 A Low Point in Sales

The CFRA analyst stated that Tesla’s auto sales likely bottomed last quarter, as noted in an Insider Monkey report. This was, Nelson noted, due to Q1 typically being the “weakest quarter for automakers.” He also highlighted that all four of Tesla’s vehicle factories across the globe were idled in the first quarter.

While Nelson highlighted the company’s changeover to the new Model Y as a factor in Q1, he also acknowledged the effects of CEO Elon Musk’s politics. The analyst noted that while Tesla lost customers due to Musk’s political opinions, the electric vehicle maker has also gained some new customers in the process.

CFRA’s Optimistic Stance

Nelson also highlighted that Tesla’s battery storage business has been growing steadily over the years, ending its second-best quarter in Q1 2025. The analyst noted that Tesla Energy has higher margins than the company’s electric vehicle business, and Tesla itself has a very strong balance sheet.

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The CFRA analyst also predicted that Tesla could gain market share in the United States because it has less exposure to the Trump administration’s tariffs. Teslas are the most American-made vehicles in the country, so the Trump tariffs’ effects on the company will likely be less notable compared to other automakers that produce their cars abroad.

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