2022 was a challenging year for Tesla (TSLA), with a slowdown in production out of China and Elon Musk’s Twitter issues. Here we will take a look at what is predicted for one of the best-performing stocks of the last number of years in 2023.
Tesla Market Performance
For some time, Tesla dominated the EV market and saw stock prices reach an all-time high closing price of $409.97 in November 2021. However, EV manufacturers like BYD are quickly putting up stiff competition. Tesla shares have steadily fallen over the last few years, and at the end of January 2023, Tesla shares sit at around $177.00.
One of Tesla’s biggest challenges this year is the damage done to the brand over the last twelve months. In 2022, Elon Musk seemed to be constantly making headlines, impacting stock volatility. Tesla remains one of the most-traded CFD stocks and a favorite of traders looking to speculate and long-term investors. Through CFDs, traders can go long or short and speculate on upwards and downward trends in Tesla Stock prices without actually holding the stock.
On top of its damaged brand image, Tesla will also have to deal with increased competition and recession fears that may heavily impact car manufacturers.
Outlook for 2023
The TSLA stock was down more than 30% in the months leading into January 2023 due to price cuts and the slowdown in manufacturing in China. Yet another challenge facing Tesla this year is recovering after the damage done to the brand’s reputation over the last twelve months.
Another factor impacting Tesla is the increasing competition from other EV manufacturers. The market is growing fast, with names like GM, Ford, and Volkswagen all looking to increase their share in the EV market. Tesla is going to need to work hard to remain in the top position and maintain profit margins.
CEO Elon Musk has stood by his decision to cut prices. The decision to lower prices, on the one hand, may help keep competition at bay but, on the other, will inevitably impact 2023 revenue estimates.
As outlined by the EV giant, they plan to increase production by 50% in 2023, which equates to more than 2 million vehicles in 2023. Tesla plans to also increase production of the Tesla Semi Trucks, with hopes of supplying 50,000 in the new year. How are they planning to keep up with all this increase? In order to keep up with growing demand and keep its market share, Tesla is planning a new factory in Mexico and an expansion at the Texas Gigafactory.
As is the case with the broader market trend, 2023 is set to be a challenging year for Tesla stock. However, in the long term, if Tesla can maintain its market lead and keeps up with production goals, it will likely remain a market favorite.
