Elon Musk is the happiest man of the week – Twitter or Tesla?

Tesla can be considered the “face of electric cars” in the global market. Over the past few years, Tesla has done quite well in the global market. However, for the past few months, the company has been falling uncontrollably. The company’s CEO, Elon Musk, has something to do with it. Nevertheless, last week, shares of electric car maker Tesla soared 33%. This is its best week since May 2013 and its second best week since the company was founded. On Friday in the United States, Tesla stock price rose 11%, the second consecutive intraday rise of more than 10%. This is an increase of nearly 75% from January’s low point of around $236 million. It is also a weekly increase of more than 33%.

This follows a sharp decline in Tesla stock, which has fallen more than 40% in six months. Tesla’s stock price will drop 65% in 2022, which is the worst year in Tesla’s 12 years since its IPO. The company is feeling the pinch of rising car prices, product delays at some companies and CEO Elon Musk’s acquisition of Twitter amid headwinds in the tech and auto industries . However, investor patience was rewarded and Tesla’s share price saw a healthy rebound in 2023.

Tesla shares rebounded this week, as its fourth-quarter results beat market expectations. In a conference call with shareholders and analysts, Tesla CEO Elon Musk says the company aims to produce 2 million cars in 2023. The company’s official forecast shows it is on track to produce 1.8 million cars this year. It has not revised its long-term goal of achieving a compound annual growth rate of 50% over the next few years.

The performance of the Tesla Q4 is very solid

In the fourth quarter, Tesla delivered a strong performance in terms of revenue and profit. It has total revenue of $24.32 billion, including $324 million in deferred revenue related to Tesla’s driver assistance system. Tesla cut prices in December and January, raising concerns about demand and inventory accumulation.

Analysts have had mixed reactions to Tesla’s financial results. Bernstein analyst Toni Sacconaghi, who has an “underperforming” rating on the stock, wrote in a research note on Thursday: “For bulls, the growth story remains fresh and doing well. . For bears, the numbers don’t lie. In early January, Tesla announced lower-than-expected car deliveries and production in the fourth quarter.

Tesla’s stock price gains come amid a broader market rebound. For the week, the S&P 500 gained 2.2% and the Nasdaq gained 4.3%. Shares of other U.S. electric car makers also rose. Shares of Rivian rose 22% in a week, while shares of former automakers Ford and General Motors rose more than 7% each. Shares of electric car maker Lucid jumped 43% on Friday following rumors that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, was considering taking the company private.

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The Twitter deal wreaked havoc on the car brand

Tesla’s poor performance last year was partly due to Musk having to focus on Twitter. He bought the social media company for $44 billion in October. Under Musk’s leadership, Twitter has seen massive layoffs, scores of advertisers have left, and internal morale is at an all-time low. Tesla remains the second best-selling stock in the US market, behind Apple. More than 94 million Tesla shares have been sold short, according to data from fintech analyst firm S3 Partners.

Ihor Dusaniwsky, managing director of S3 Partners, said that despite the rebound in Tesla shares, active short selling continued. Short sellers believe Tesla’s rise has created “an overheated, overbought stock that will reverse, at least in the short term,” he says.

Statistics from S3 Partners show that over the past week, the total number of Tesla shares that were sold short increased by 3.9%. Additionally, investors who sold the stock short lost $4.3 billion over the same period.

Tesla rebondit

In addition to rising stock prices, Tesla’s options trading has also increased recently. Nearly 3 million Tesla options contracts on average now change hands per day, up from 1.5 million a year ago, and more than any other security, according to data from CBOE Global Markets. Currently, Tesla averages about 7% of all options trades. January 6 was the busiest day on record, with over 5.2 million contracts traded, representing almost 10% of all options.

In December, for the first time in nearly two years, Tesla options traded higher than the Invesco QQQ exchange-traded fund (ETF), which tracks Nasdaq 100 stocks, for the first time in nearly two years. In July, the company consistently outperformed Apple in options trading, a notable achievement. In the S&P 500 index (S&P 500), Tesla ranks sixth in market value, while Apple ranks first. The traders who bought the contracts had “almost complete confidence in Tesla and its technology and its CEO Elon Musk. Tesla is unique, said Steve Sosnick, chief strategist at Interactive Brokers Group, which has attracted so many speculators, it also has countless fanatical followers.

Recently, Tesla made huge price cuts for its electric cars and it seems to be getting the company back on track. Elon Musk says price cuts are driving buying in 2023 and Tesla could sell 2 million cars this year. Tesla Chief Financial Officer Zach Kirkhorn says the price cuts would hurt profitability, but margins should improve as the company cuts costs. As of Wednesday’s close, Tesla shares were up 0.38%. Tesla shares rose 4.3% in after-hours trading after the earnings report. This is a huge advantage for Tesla.