Investor's Corner

Tesla (TSLA) stock among S&P 500’s best-performing stock in January

Credit: Tesla Asia/Twitter

Despite a painful 2022, Tesla stock (NASDAQ:TSLA) saw a strong rebound this January. Tesla’s recovery has been so strong that the electric vehicle maker became one of the best-performing stocks in the S&P 500 index for the month. 

After its 65% drop last year, TSLA stock completed January 2023 with a 41% gain, its best monthly performance since October 2021. Tesla’s rise has been partly fueled by the company’s strong fourth quarter and full-year 2022 earnings report, which were released last week. 

In its Q4 and FY 2022 Update Letter, Tesla posted total revenues of $24.318 billion in the fourth quarter, representing a 37% YoY growth. The company’s operating income also improved year-over-year to $3.9 billion in Q4. The results largely beat expectations.

For the entire year, Tesla’s total automotive revenues reached $71.462 billion, of which $1.776 billion were regulatory credits. Automotive gross profit was listed at $20.354 billion, and automotive gross margins were listed at $28.5%. 

Despite its strong January performance, Tesla still has a long way to go before it fully recovers the losses it incurred last year. Tesla shares are still down about 44% for the past 12 months. 

Considering Tesla’s results, the company became the S&P 500’s second-best performer. In first place is Warner Bros. Discovery, which surged a whopping 56% this January. Similar to Tesla, Warner Bros. Discovery also had a difficult 2022, falling by about 60%. 

In comparison, the S&P 500 saw a 6% increase in January, which is a notable improvement after the index slid almost 20% last year. 

Tesla will have a very busy year this 2023, with the company aiming to start the initial production of the Cybertruck at Giga Texas this summer. Tesla is also looking to expand its footprint in Giga Nevada to include a facility for the mass production of the Semi. A 100 GWh 4680 cell production line will also be added to the facility. 

Disclosure: I own TSLA shares.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Tesla (TSLA) stock among S&P 500’s best-performing stock in January
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