SHARE OF THE WEEK: Investors await Tesla’s fourth quarter results after a difficult year with the economy and the acquisition of Twitter leaving Elon Musk in shock
All eyes will be on Tesla next week as it announces fourth quarter results.
The electric carmaker, led by Elon Musk, has had a tough time over the past year, weighed down by a slowdown in China, as well as broader economic headwinds hitting supply chain and spending of consumption.
But shares have also been under pressure since Musk’s £38billion acquisition of Twitter, which saw him sell nearly £18billion of his Tesla stock.
For the fourth quarter of 2022, analysts are expecting revenue of £20 billion, up 40% from the same period of 2021.
AJ Bell analyst Danni Hewson said the stakes are particularly high for Tesla this quarter after it missed Wall Street estimates for deliveries.
The automaker shipped 405,278 cars to customers between October and December, missing Wall Street estimates of 420,000. However, that remained a record and a one-third increase from the equivalent quarter in 2021.
“Earnings have fallen and this set of results is likely to show further evidence of a consumer who appears to have been absent from the stock over the past year, particularly in China,” Hewson explained.
Tesla started this year with a bang after slashing prices in the United States and Europe in a bid to boost sales.
In the UK, some prices have been reduced by up to £9,000.
Shares have jumped 19% since the start of 2023, slowly reducing last year’s more than 60% drop for Tesla stock.