Shulou(Shulou.com)11/24 Report--

Shares of electric car maker Tesla soared 33% in the past week, the best weekly performance since May 2013 and the second-best weekly performance since the company was founded, according to news on January 28.

Tesla shares rose 11 per cent on Friday local time, rising more than 10 per cent for the second day in a row, up nearly 75 per cent from January lows, or about 1.6 trillion yuan, or more than 33 per cent for the whole week.

Prior to that, Tesla's share price fell sharply, falling more than 40 per cent in six months. Tesla's share price fell 65% in 2022, the worst year since Tesla went public 12 years ago.

Tesla felt the negative impact of rising car prices, delays in some companies' products and CEO Elon Musk's acquisition of Twitter because of widespread disadvantages in the technology and automotive industries. However, investor patience paid off, and Tesla's share price rebounded healthily in 2023.

Tesla shares rebounded this week on the back of fourth-quarter results that beat market expectations. In a conference call with shareholders and analysts, Elon Musk, Tesla's chief executive, said the company aims to produce 2 million cars by 2023 and that strong demand will support sales of these cars.

According to Tesla's official guidelines, the company is expected to produce 1.8 million cars this year and has not revised its long-term target of achieving a 50 per cent compound annual growth rate in the coming years.

In the fourth quarter, Tesla performed well in terms of revenue and profits, with total revenue of $24.32 billion, including $324 million in deferred income related to Tesla's driver-assisted driving system. Tesla cut prices sharply in December and January this year, raising concerns about demand and inventory accumulation.

Analysts have had mixed reactions to Tesla's financial performance. Bernstein analyst Tony Sacconaghi, who rates the stock "below the market", wrote in a research note on Thursday: "for bulls, the growth story is still alive and doing well. For bears, numbers don't lie." In early January, Tesla reported that car deliveries and production in the fourth quarter were lower than expected.

The rise in Tesla's share price coincided with a rebound in the market. The s & p 500 is up 2.2% this week, and the NASDAQ is up 4.3%. The share prices of other US electric car makers have also risen. Rivian shares are up 22 per cent in a week, while traditional carmakers Ford and general motors are up more than 7 per cent respectively. Shares of electric car maker Lucid surged 43% on Friday on rumors that Saudi Arabia's sovereign wealth fund, the Public Investment Fund, plans to take the company private.

Tesla's poor performance last year was partly due to Mr Musk's shift of focus to Twitter, the social media company he bought for $44 billion in October. Under Musk's leadership, Twitter has experienced massive layoffs, mass exodus of advertisers and low internal morale.

Tesla is still the second-largest short seller in the U. S. market, after Apple. According to financial technology analysis firm S3 Partners, more than 94 million of Tesla's shares were shorted.

Ihor Dusaniwsky, managing director of S3 Partners, said that despite the rebound in Tesla's share price, active short selling continued. He explained that short sellers believed that the rise in Tesla's share price had created "an overheated and overbought stock that will reverse, at least in the short term".

According to S3 Partners, the total number of shares shorted by Tesla increased by 3.9% in the past week, while investors who shorted the stock lost $4.3 billion over the same period.

In addition to the rising share price, Tesla's options trading has also surged recently. Data from the CBOE global market show that an average of nearly 3 million Tesla options contracts change hands every day, up from 1.5 million a year ago and more than any other stock. At present, Tesla accounts for an average of about 7 per cent of all options trading. January 6 was the busiest day on record, with more than 5.2 million contracts traded, or nearly 10 per cent of all options.

In December, the trading volume of Tesla options surpassed that of Invesco QQQ Exchange traded Fund (ETF), which tracks the Nasdaq 100 index for the first time in nearly two years. In July, the company continued to overtake Apple in options trading, a remarkable achievement. Tesla ranks sixth by market capitalization in the S & P 500, while Apple ranks first.

Steve Sosnick, chief strategist at Interactive Brokers Group, said the traders who bought the contracts "had almost full confidence in Tesla, his technology and Musk, chief executive. Tesla is unique because it attracts so many speculators as well as countless fanatical followers."

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