Ever-escalating sticker prices, rising interest rates, and supply shortages cast a pall over the auto industry in 2022, when new vehicle sales in the U.S. were the lowest since 2011. But there are indications that the supply chain woes that have plagued the industry for the past
What happened
Tesla's (NASDAQ: TSLA) announcement of price cuts earlier this month continues to reverberate across the EV industry as shares of rival electric car manufacturers see their share prices tumble this morning. Through 10 a.m. ET, shares of Chinese electric automakers N
Faced with a tight labour market and a shortage of workers with key software engineering skills, some German companies are looking at thousands of layoffs in Silicon Valley as an opportunity to recruit top talent.
Renault and Nissan hailed a new deal announced on Monday as a major step in reviving their two decade alliance. But for the French car group the benefits of the revamp are for now unclear and potentially quite limited, three industry sources said.
Tesla (TSLA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Ford Motor Co said on Monday it was cutting prices of its electric crossover SUV Mustang Mach-E by as much as $5,900 per vehicle, weeks after rival Tesla Inc slashed prices globally on its electric vehicles by as much as 20%.
The NASDAQ 100 Pre-Market Indicator is down -127.98 to 12,038.62. The total Pre-Market volume is currently 68,935,366 shares traded.The following are the most active stocks for the pre-market session: Lucid Group, Inc. (LCID) is +0.88 at $13.75, with 14,993,236 shares traded. LC
China's BYD Co, the world's biggest seller of battery electric vehicles (BEVs) and plug-in hybrids, expects its 2022 net profit to be more than five times the amount it booked a year earlier, it said on Monday.
Wall Street moved sharply higher for the fourth trading week of 2023. My "three stocks to avoid," which I thought were going to lose to the market in the past week -- Bed Bath & Beyond, D.R. Horton, and Tesla Motors -- plunged 24%, rose 2%, and soared 33%, respectively, avera
Tesla (
NASDAQ:TSLA
) stock soared 33.3% last week. Tesla CEO
Elon Musk’s positive commentary around demand and production during the Q4 (fourth quarter) conference call gave the stock a significant boost. While TSLA stock recovered some of its lost ground,
Vijay Rakesh of Mizuho Securities remains upbeat and sees further upside.
While economic uncertainty indicated a contraction in the automotive market in 2023, Musk highlighted that the company witnessed the strongest orders (the highest in its history) in January. He added that the company is seeing orders that are twice its production rate. Thanks to the high order volumes, the company slightly raised the price of its Model Y. Moreover, Musk expects demand to remain strong.
Additionally, Tesla will likely benefit from the increase in production and margin expansion. Tesla rolled out production guidance of 1.8 million vehicles for 2023 (with a potential for 2 million vehicles). Meanwhile, its operating margin will likely benefit from operating leverage.
Taking note of Tesla’s leadership position in the
EV market and
strong profitability, Rakesh said, “we continue to see TSLA as a global leader in EV (~17% C22E share) with industry leading margins and a long-term 50% CAGR production target intact, as we see secular EVs growing at a ~30%+ 10Y CAGR.”
Even though the five-star analyst is bullish about Tesla stock, he sees weak consumer spending and affordability as near-term headwinds. Nevertheless, his price target of $250 implies a further upside of 40.53% in Tesla stock based on the closing price of $177.90 on January 27.
Will Tesla Stock Go Up in 2023?
Tesla stock has gained over 44% year-to-date. Moreover, the majority of analysts remain bullish about its prospects. TSLA stock has received 20 Buy, seven Hold, and three Sell recommendations for a Moderate Buy consensus rating on TipRanks. Meanwhile, analysts’ price target of $191.37 implies an upside of 7.57%.
Bottom Line
Tesla’s market leadership and strong demand position it well to deliver solid sales in 2023. Moreover, its ability to expand operating margins by introducing lower-cost models, more-efficient factories, and operating leverage bodes well for profitability. However, economic uncertainty may continue to be a short-term drag.
Disclosure
China's Xpeng Inc said on Monday it had appointed Wang Fengying, the former vice chairman of Great Wall Motor, as the electric vehicle (EV) startup's president.
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