Tesla’s Share Price Steadily Claws Back 2022 Losses

Tesla’s share price has been steadily rising since the beginning of the year, erasing a substantial portion of the losses the stock posted during 2022.

As of February 23, the gains haven’t brought the share price back up to their peak though, when Tesla’s market cap briefly outgrew all the major traditional carmakers combined. 

Renewed confidence in the stock comes as the company posted a strong financial performance from the fourth quarter. Tesla produced 1.37 million vehicles during the year and delivered 1.31 million vehicles, up 47% and 40% on the year, respectively. 

Tesla also has the highest profit margins among electric vehicle makers. The company earned $9,574 in net profit per vehicle in the third quarter of 2022, four times as much as its closest rival GM, according to Reuters.

In addition, Tesla has been able to slash the selling price of its cars to try to further boost demand. The company announced in January that it would be cutting global prices on all its car lines by as much as 20%.

 While that move had a temporary dampening effect on the share price as investors worried about the impact on margins, the stock has since continued to rise, perhaps on the possibility of more sales and enhanced competitiveness from the cuts.

On February 23, Tesla’s market cap was $633 billion. Towards the end of December 2022, it was around $435 billion, down 65% from a peak on January 3 of that year when it was valued at more than $1.2 trillion.