Elon Musk Forces Bears Back Into ‘Hibernation’ As Tesla Delivers In ‘Epic Fashion’

Elon Musk Takes Control, Tesla Dominates as Bears are Sent into ‘Hibernation’ in Epic Fashion

Tesla
Tesla Bears

Tesla Inc. (NASDAQ: TSLA) pleased investors with their impressive fourthquarter results on Wednesday, leading Wedbush analyst Daniel Ives to upgrade his rating on the companys shares from Outperform to $200 from $175.

Bears Lose

Ives found the demand growth outlook for Tesla to be twice that of its production coming out of 2023, putting delivery expectations on target for a 38% jump this year.

Despite a slight 200 basis point miss in their automotive gross margin, Ives believes that the 2023 outlook is still highly conservative given the strong rebound in demand for its Model Y and 3 vehicles in China following price cuts.

He also believes that Teslas decision to temporarily sacrifice margins for higher volumes is a wise move to retain customers and ward off competition in the near term.

Tesla Car
Tesla Car

Musk’s acknowledgment of the complex spider web relationship between Twitter and Tesla will likely elicit a mixed response from investors, Ives said. The Twitter noise, nevertheless, is starting to dissipate, he added.

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