Tesla reported a record fourth-quarter net income on Wednesday, and the company predicted that additional software-related profits will keep its margins higher than any other automaker.
Elon Musk’s American electric car maker was facing doubts about its business after disappointing sales and a series of price cuts for Tesla vehicles around the world.
Tesla was worth $1.1 trillion at the end of 2021.
However, as of December 28, it was worth $353 billion, a 68% decrease.
At the time, the stock was down more than 70% year to date, and it was on track to have its worst month, quarter, and year ever.
From the beginning of 2020 to the end of 2021, shares of the same company increased by more than 1,100%.
Tesla shares closed at $144.43 on Wednesday, up more than 30% from the start of the year.
Tesla stock value
TSLA shares opened 2022 near $400, but by the end of the year, the stock price had dropped to near 2020 levels.
This afternoon, financial results were released.
The Austin, Texas-based manufacturer of electric vehicles and solar panels reported $3.69 billion in revenue from October to December, or an adjusted $1.19 per share. According to FactSet, this outperformed analysts’ estimates of $1.13. Profit for the company increased by 59% over the same period last year.
Revenue for the quarter was $24.32 billion, which fell short of analysts’ expectations of $24.67 billion.
However, the company’s automotive gross profit margin fell from 30.6% in the fourth quarter of 2021 to 25.9% in the same period in 2022.
Why did Tesla stock have its worst year: Will it recover in 2023?
In 2022, Tesla’s stock price plummeted.
Musk set a world record earlier this month for the largest loss of personal fortune in history.
The record was set by Guinness World Records after Forbes estimated that Tesla CEO Elon Musk had lost $182 billion, though other sources suggest that the figure could be closer to $200 billion.
The drop followed a trend, as Tesla stock had dropped 58% since the beginning of the year at the time.
Musk sold nearly $7 billion in Tesla stock in August to get his finances in order ahead of his acquisition of Twitter, which irritated investors.
