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Tesla Stock Next Year: 2 Major Catalysts

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Tesla Stock Next Year: 2 Major Catalysts

(CTN News) – Is it possible that shares could bounce back in 2023 after getting crushed in 2022?

This year, Tesla (TSLA -3.27%) shares have taken a beating. It is worth noting that the stock is down more than 50% for the year so far. In the face of a difficult macroeconomic environment, investors seem concerned about the company’s ability to continue to grow its sales at such a rapid rate.

Despite the fact that it is impossible to predict which way the stock price will move next year, there are a number of reasons why it might attract some positive attention in the near future.

There might be two catalysts on the horizon that may excite investors: soaring sales in the company’s energy business and the long-awaited launch of the Cybertruck, which has been anticipated for a long time.

The energy storage business of Tesla

It was impressive to see Tesla’s 42% year-over-year growth in vehicle deliveries in the third quarter, but one small part of its business grew at a much faster rate than the rest.

A total of 1,100 megawatt-hours of energy storage were deployed by the company, an increase of 62% year over year. Tesla wrote in its quarterly letter to shareholders that this was by far the highest level of energy storage deployments that the company has ever achieved in its history.

However, management said that the demand for these products is still trending ahead of the supply of these products.

Tesla recently announced that it is ramping up production at its factory in Lathrop, California, so that it will have a better chance of meeting the fast-growing demand for its energy storage products.

There seems to have been continued momentum in this business into the fourth quarter of the year. On Dec. 9, the company announced that it had deployed 100 megawatts of energy storage capacity in a single project in Belgium. This represents the first deployment of its kind.

The cybertruck

Tesla’s energy storage business is one of the most significant parts of its overall business, but it is still small as a percentage of its overall revenue.

There was revenue of $21.5 billion in total revenue generated by the automotive sector in Q3, for example, which accounted for approximately $18.7 billion.

The company’s vehicle plans are therefore likely to be the biggest driving force behind the company’s sales in the near future.

As a result, investors should pay close attention to Tesla’s management’s comments on the Cyber truck in the coming weeks.

During the company’s third-quarter earnings call, CEO Elon Musk said the long-awaited all-electric truck is in its “last lap” of preparation before it can begin production, which he announced in his remarks.

According to the management of the company, the vehicle is expected to enter production somewhere around the middle of 2023, at the latest.

Tesla originally intended to produce the Cyber truck by the end of 2021.

There are, however, supply chain challenges in the automotive industry as well as worse-than-anticipated logistic challenges that have caused Tesla to prioritize the growth of existing models over the cyber truck, resulting in the launch being repeatedly delayed.

In the future, it is always possible that there will be a delay in the launch of the Cyber truck. In spite of that, it does appear to be close enough to its launch that investors will begin to pay more attention to the vehicle’s sales potential. This will be done when analyzing it based on its launch date.

To put the hype around the vehicle into perspective, it is estimated that by November 2022, Tesla had gathered more than 1.5 million reservations for the vehicle.

Of course, there is nothing to sneeze at when it comes to the pickup truck market. Grand View Research estimates that the global pickup truck market will reach $223 billion by 2021, based on data from the company.

A research firm estimates that around three-fourths of the market for this product is accounted for in North America.

Tesla’s business and stock could be impacted by a number of catalysts in the years to come. However, these two items stand out as two of the most significant in 2023 and beyond.

Is it a sound idea to invest $1,000 right now in Tesla?

It is absolutely crucial that you hear this before deciding to invest in Tesla.

As part of their 10 Best Buys Now list released today, the Motley Fool Stock Advisor analyst team pointed out Tesla wasn’t one of them.

SEE ALSO:

Tesla Launches 2 Electric Vehicle (EV) Models in Thailand

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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