Shares of Tesla have surged higher amid more good news for the giant electric carmaker in the Chinese and European markets. The rise in the company’s stock has helped CEO Elon Musk regain his spot as the world’s richest person, further driving up confidence in the automaker ahead of the upcoming Investor Day on March 1.
Tesla Beat Revenue Expectations for Last Quarter Despite Bad Macroeconomic Conditions
Despite unfavorable macroeconomic conditions, Tesla beat revenue estimates for the last quarter of 2022. The carmaker reported $24.32 billion in revenue compared to the estimated revenue of $24.16 billion. Likewise, the earnings per share came at $1.19 instead of the estimated $1.13.
The good news came as Tesla shares have fallen around 50% from their record high in November 2021. While the drop is primarily attributed to macroeconomic conditions, many unfortunate events have helped exacerbate the situation.
For instance, Tesla has delayed mass production of its Cybertruck, which was initially shown off in 2019 and was expected to start production in 2021, leading to an aging product lineup. Musk has said that mass production won’t begin until next year.
Furthermore, the company faces backlash over a years-long delay in delivering self-driving technology through software updates to its customers’ cars. A Tesla owner recently filed a class-action lawsuit against the company over “allegedly misleading the public regarding its Autopilot, Enhanced Autopilot, and Full Self-Driving Capability (‘FSD’) technology.”
Earlier this year, South Korea’s antitrust watchdog fined Tesla $2.2 million for failing to provide accurate information regarding its cars’ short driving capabilities in sub-zero temperatures. The regulator also fined the carmaker 1 million won for failing to disclose enough information regarding its cancellation policy to users.
And more recently, Tesla revealed that it had reduced the prices of its electric cars in the US and Europe by 20% to make more of the company’s models eligible for a new federal tax credit. The news further sent Tesla shares plunging.
Tesla Surges as Good News from China and Europe Pours In
Tesla shares jumped more than 5% on Monday amid good news from the Chinese and European markets, which are the global leaders in EV sales. More specifically, the company announced that its German plant is now producing 4,000 cars per week, hitting the production target three weeks ahead of schedule.
With the new production capacity, Tesla’s plant in Germany is set to produce over 200,000 vehicles per year. The company reportedly said the maximum capacity planned for the Brandenburg plant is 500,000 cars a year, or 10,000 per week.
In China, electric carmaker Li Auto has said it expects first-quarter revenue to come in as high as $2.7 billion, and its promising outlook for the coming months is good news for Tesla too.
Li said it delivered more than 15,000 electric cars in January while projecting first-quarter deliveries to reach between 52,000 and 55,000. That implies an average of about 19,000 per month for February and March. This is also great news for Tesla’s Chinese sales as they are expected to come similarly high.
Meanwhile, the recent rise in Tesla shares has helped Musk regain his spot as the world’s richest person. According to Bloomberg Billionaires Index, the Tesla and Twitter chief is now the wealthiest person in the world with a net worth of $187 billion, followed by Bernard Arnault of luxury brand LVMH, whose current fortune is estimated at $185 billion.
It is worth noting that Tesla’s upcoming Investor Day on March 1 also stirs excitement around the company. That is because the company is expected to provide details regarding innovations and products, including potential updates on robotic taxis and a lower-priced mass-market vehicle on the day.
This article originally appeared on The Tokenist
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