Tesla Smashes Delivery Records, Stocks Surge
Tesla (TSLA) shares have experienced a 0.5% increase in early trading as the company announced record-breaking quarterly deliveries and a total of over 1.8 million vehicles delivered worldwide in 2023.
In the fourth quarter of 2023, Tesla delivered an impressive 484,507 vehicles, setting a new high for quarterly deliveries. This number slightly exceeded analyst expectations of 480,000 vehicles, as reported by Wedbush analyst Dan Ives.
The annual delivery figure for 2023 was equally impressive, with Tesla delivering a total of 1.8 million vehicles worldwide. This is in line with the company’s guidance and represents a significant increase from the 1.3 million vehicles delivered in 2022.
Wedbush analysts attribute the fourth quarter’s delivery success to strong data out of the key China region. This positive trend further strengthens their confidence in Tesla’s growth prospects for 2024.
While Tesla’s self-driving vehicles have faced scrutiny regarding their safety, the firm notes that they continue to gain traction in the market. Wedbush sees this as an additional value driver for Tesla’s growth story in 2024, as the company leverages AI technology to enhance its product portfolio.
In 2023, Tesla, along with the other Magnificent 7 stocks, outperformed the returns of the S&P 500, partly due to gains related to artificial intelligence.
However, Bernstein analysts have raised concerns about profitability, stating that 2024 looks tough for the company. They believe Tesla will face challenges in maintaining profitability in the coming year.
Starting the first trading day of 2024, Tesla shares saw a modest increase of around 0.5% in early trading.
In conclusion, Tesla’s impressive fourth quarter delivery numbers and strong performance in 2023 have propelled its stock to surge. While the future presents challenges, such as profitability concerns, many analysts remain optimistic about Tesla’s growth potential, especially in the Chinese market and with the continued development of self-driving capabilities.
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