Tesla: The Key Drivers for Stock Growth in 2023

What is the 2 major accelerator for Tesla stocks in the upcoming year change?

Although it is impossible to predict the direction in which the stock price will go over the course of the following year, there are a handful of reasons to believe that the stock could get some positive attention. The skyrocketing revenues in the company’s energy division and the long-awaited launch of the Cybertruck are two potential catalysts that could pique the interest of investors in the near future.

The business of storing electricity is owned by Tesla.

Although Tesla’s year-over-year rise in vehicle deliveries of 42% in the third quarter was spectacular, one of the company’s smaller business segments was expanding even faster. The amount of energy storage deployed by the corporation increased by 62% year over year, reaching 1,100-megawatt hours. Tesla stated in its quarterly letter to shareholders that this was “by far the greatest level” of energy storage deployments that it had ever achieved. “by far” refers to “by far the highest level” of energy storage deployments. However, management reported that demand for these products continues to run ahead of supply on average.

According to Tesla, in order to better serve the rapidly expanding market for its energy storage business, the company is increasing production at its factory in Lathrop, California.

The momentum that has been building in this company appears to have carried over into the fourth quarter. Indeed, on December 9 the company made the announcement that it had successfully completed a single project in Belgium that has the potential to store 100-megawatt hours of energy.

Cybertruck

Although the energy storage business is an important one for Tesla, its contribution to the company’s total revenue is still relatively minor. For example, during the third quarter (Q3), automotive revenue accounted for approximately $18.7 billion of the overall revenue (which was $21.5 billion). Because of this, the company’s plans for its vehicles are likely to be the single most important factor in driving sales.

Because of this, investors should pay particular attention to the comments made by Tesla management on Cybertruck. Elon Musk, CEO of Tesla, stated on the firm’s earnings call for the third quarter that the long-awaited all-electric truck is currently in its “final lap” of preparation before the business can begin manufacturing. According to the management, the production of the vehicle is not expected to begin until sometime in the middle of the year 2023.

Initially, Tesla anticipated that production of the Cybertruck would commence in the latter half of 2021. However, due to difficulties in the global supply chain of the automotive industry and logistics constraints that were worse than expected, Tesla decided to prioritize the production expansion of existing models, which resulted in the introduction of the Cybertruck being continually delayed.

It is always feasible that the introduction of the Cybertruck will be postponed for yet another time. However, it does appear that its introduction to the market is becoming close enough for investors to start paying greater consideration to the sales potential of the vehicle in their study. In order to put the excitement surrounding the vehicle into perspective, consider the fact that by November 2022, Tesla had received an estimated 1.5 million reservations for the vehicle.

The demand for pickup trucks is obviously not something to be taken lightly. According to Grand View Research, the market for pickup trucks around the world is expected to be worth $223 billion in the year 2021. According to the findings of the research company, almost three-quarters of this market is comprised of North America.

In spite of the fact that there are a number of variables that could boost Tesla’s business and stock in the years 2023 and beyond, these two factors have the potential to be particularly influential.

For More Stock Investment Related News, Click Here.

 

Get Your Free Actionable Trading Report Each DaySubscribe to the
I’m a Stock Trader
mailing list and get interesting stuff and updates to your email inbox.

Latest Newsletters

On this website we use first or third-party tools that store small files (cookie) on your device. Cookies are normally used to allow the site to run properly (technical cookies), to generate navigation usage reports (statistics cookies) and to suitable advertise our services/products (profiling cookies). We can directly use technical cookies, but you have the right to choose whether or not to enable statistical and profiling cookies. Enabling these cookies, you help us to offer you a better experience.