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.
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.
Disclosure: Joey Klender is a TSLA Shareholder.
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