Tesla (TSLA) will release its latest earnings report, which comes hot on the heels of its aggressive price-cut strategy.
German officials want to see a production ramp at the Berlin Gigafactory.
Tesla recently bounced from a downtrend support line and has risen above crucial resistance around $130. That could give the stock the green light to head for the $170 level if the earnings release is good.
Fourth-quarter deliveries at Tesla were 405,278 units, up 31.5% from the year-ago quarter and 18.5% from the previous quarter. The numbers marked quarterly records for the firm. However, analysts were looking for deliveries of around 420,000 units. Despite aggressive year-end incentives from the automaker, total deliveries fell short of estimates.
The fourth quarter of 2022 also led analysts to believe that car demand is cooling due to rising interest rates and economic uncertainty.
According to Munro & Associates’ analysis, Tesla achieved the lowest estimated costs in the EV industry and will benefit from the latest price cuts.
Sandy Munro says the company can still profit from its cars, which will be higher than other OEMs. With Full-Self Driving tech in the future – the gross margins could reach 40 percent. The cost advantage over other carmakers is so high that analysts believe the recent move to cut prices could eliminate or eradicate competitors.
German officials have also told the IG Metall labour union that Tesla is ready to boost production at its Berlin factory. Demand for EVs has been in question, and Tesla made an aggressive move with its price hikes.
Jörg Steinbach, an Economic Minister, met with the union and shared that Giga Berlin should ramp up production. The minister said, “Tesla production has to grow a bit more.” Recent expansions have been made at the site. The company is expected to hire new staff to increase production in the coming months.
