According to foreign media reports, after a 65% plunge in 2022, Tesla’s stock price rebounded sharply in the first quarter of 2023.
In 2022, Tesla’s stock price has plummeted all the way due to rising prices of Tesla cars, delays in the launch of some products, and market concerns that Tesla CEO (CEO) Elon Musk will be distracted by the acquisition of Twitter. Over the course of last year, the stock tumbled 65%, its biggest annual drop since it went public in 2010.
After slumping in 2022, Tesla shares soared 50% in less than a month in 2023, as a massive price cut in early January helped the company rebound.
In addition, Tesla’s strong financial results for the fourth quarter of 2022 also pushed the company’s stock price higher. At the time, the company reported record fourth-quarter revenue and net profit, beating consensus estimates and saying it could produce 2 million vehicles by 2023.
As of the close of U.S. stocks on Wednesday local time, the company’s stock price rose 2.48% to close at $193.88, and the company’s market value reached $613.456 billion. Tesla shares are up 54% so far this year.
Tesla’s upward momentum could be attributed to increased optimism about the economy and the market, benefiting from price cuts and a positive demand outlook, among other factors. Also, there has been less drama surrounding Musk’s acquisition of Twitter.
In early March of this year, it was reported that since the beginning of 2023, the popularity of Tesla stock among retail investors in the United States has continued to “explode the table”. Retail investors are snapping up Tesla shares at a frantic pace, and have repeatedly set new records for single-day purchases.
In recent months, Tesla has cut prices in major markets such as China, the United States, Europe, Canada, Australia, and New Zealand. After the price cut, the company saw a surge in demand for its cars. Tesla CEO Elon Musk revealed that in January this year, the order volume Tesla received was more than twice the production volume.
