Elon Musk (photo vecteezy, YouTube/Insider News)
Tesla shares jumped 33% this week, marking the best weekly performance since May 2013 and the second best performance in history.
The stock rose 11% on Friday to close at $177.88. The recovery came after a six-month period in which Tesla shares fell more than 40%. The stock’s 65% plunge in 2022 was its worst in Tesla’s 12-plus years as a public company.
Tesla’s growth this week came thanks to an optimistic fourth quarter 2022 earnings report. During the call with shareholders and analysts, CEO Elon Musk said the company is on target to produce a potential 2 million vehicles in 2023, and he explained that demand will also support car sales goddess.
More in-
The official guidance called for the production of 1.8 million vehicles this year. The company did not change its old target of a compound annual growth rate of 50% over a long horizon of years.
Tesla posted total revenue of $24.32 billion, including $324 million of deferred revenue related to Tesla’s driver assistance systems. The company lowered its machinery prices dramatically in December and January, leading to concern about demand and inventory build-up.
Analyst reaction to Tesla’s numbers was mixed. In early January, Tesla reported lower-than-expected vehicle shipments and production in the fourth quarter.
Tesla’s stock surge came amid a broader market rally. The S&P 500 rose 2.2% this week and the Nasdaq rose 4.3%.
Other US electric car makers saw their shares climb higher. Rivian rose 22% for the week, while shares of veteran automakers Ford and General Motors rose more than 7%.
Part of Tesla’s underperformance last year was attributed to a shift in focus from a struggle to Twitter, which it acquired for $44 billion in October. Under Musk’s leadership, Twitter has experienced mass layoffs and runaway advertisers, hurting employee morale.
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