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Tesla Stock Rose: What Pushing It?

200422_Nasdaq_Tesla Stock Rose

Tesla stock rose on Monday after a long holiday weekend, sending the stock up as much as 2.2%.

Tesla (NASDAQ: TSLA) has been in the news headlines for several days after Elon Musk offered to buy Twitter for $54.20 a share, or about $43 billion. Musk announced a 9.2% stake in the company earlier this month, but he is not the largest shareholder anymore. Asset management firm Vanguard Group disclosed that its funds now own a 10.3% stake.

According to CNBC, Musk stated in a filing on Thursday, April 14th, that the social media company must be transformed privately because it can ‘neither thrive nor serve’ free speech in its current form.

Meanwhile, Twitter’s board has not rejected Musk’s bid, but it has replied with a ‘poison pill’ defense. This will prevent Musk from owning more than 15% of Twitter’s shares.

The board might possibly try to locate a “white knight” buyer or even launch a formal public sale procedure. Twitter has enlisted the help of Goldman Sachs and JPMorgan Chase as consultants, and observers believe the firm and its bankers are already looking at other prospective suitors.

But that’s not what’s pushing Tesla stock higher today.

What Exactly Happened?

Tesla is expected to resume at least partial production of cars at its Chinese gigafactory this week.

Instead, an article published in The Wall Street Journal over the weekend, anticipating that Tesla could be able to resume at least partial production of cars at its Chinese gigafactory this week, is giving Tesla investors reason to be optimistic.

According to the article, Tesla is expected to have one ‘shift’ per week and gradually increase to two shifts by the end of April.

If shifts at the Shanghai facility are conducted the same way they are in the United States (four shifts per week, 12 hours each shift, three days on, three days off), Tesla should be back to 50% capacity in China by the end of the month.

As reported by Reuters, it confirmed that the company is “preparing” to reopen, stressing that workers will need to reside on-site to work while the city is on lockdown. And Beijing reportedly gave Tesla “priority” in resuming operations, although that’s not an official confirmation.

Tesla relies on Shanghai to help it fulfill its target of producing over 1 million vehicles globally this year, and the longer the Shanghai factory is closed, the harder it will be to meet that objective. Tesla, on the other hand, hopes to grow Giga-Shanghai to the point where it can produce one million cars per year on its own.

Tesla Q1 2022 Earnings

Tesla will release its Q1 2022 financial results after the markets close today, April 20th.

Tesla’s first-quarter earnings for 2022 have surpassed analysts’ expectations. Here’s what you need to know. 

Earnings per share: $3.22, compared to the expected $2.26.

Revenue: $18.76 billion, compared to the expected $17.80 billion

Tesla’s earnings per share vaulted 246% to $3.22, with sales up 81% to $18.76 billion. That’s the second straight quarter of accelerating growth for both. This includes $679 million in regulatory credits, which has more than doubled since the fourth quarter of 2021.

CNBC reported that Tesla shares rose as high as 6% in after-hours trading.

According to Tesla’s shareholder presentation, revenue growth was fueled in part by an increase in the number of cars delivered and an increase in average sales pricing.

A total of 310,048 vehicles were reported in the first-quarter deliveries, up 68% from a year ago. However, it was only slightly higher than Q4 levels and was generally in accordance with views.

At the same time, Tesla remains optimistic that its revenue will increase by at least 50% by 2021. However, due to COVID-related shutdowns, the company has lost nearly a month of ‘build volume’ in Shanghai, according to the executives.

What else are you looking for in Tesla’s stocks?

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