Tesla Inc (NASDAQ: TSLA) stock ended April with a close of $ 870.76, putting its monthly losses at 23.98%. That is the worst demonstration, even in 2022. The natural tendency may be to avoid such an overstatement stock. However, this is Tesla. You always need to look for openness.
The massive TSLA stock loss in April could be put evenly at the feet of Tesla CEO Elon Musk. Not because of any decisions he has made in Tesla, but because of a drama about Musk’s great desire to buy Twitter Inc (NYSE: TWTR). In the latest developments, Tesla’s stock dropped 12% on April 26, after Twitter accepted Musk’s purchase agreement. Friday’s decline was relatively small, but it came as the market reacted to the news Musk sold $ 8.4 billion in TSLA stocks to finance the deal.
All of this disruption on Twitter has been bad news for Tesla stock. However, it has created a unique opportunity for investors to acquire shares in TSLA stocks at a huge discount.
Tesla’s Q1 Indicates the Company Is in a Strong Growth.
April’s impressive decline in TSLA stocks has happened despite the company sending the strongest earnings for the first quarter. The good news for shareholders started on April 2. Tesla released its first quarterly 2022 production numbers and automotive delivery. There have been concerns that supply chain problems could disrupt company production. It was not so. In addition to those challenges, Tesla reported producing more than 305,000 new EVs, and 310,000 deliveries per quarter.
By comparison, in the first quarter of 2021 the company produced 180,000 vehicles and delivered 185,000. This year’s figures represent a nearly 70% growth in production and an increase of 68%.
On April 20, Tesla followed that up with its first quarterly profit of 2022. The company exceeds the analyst’s expectations in both the top and bottom lines. Revenue of $ 18.76 billion, increased by 81% annually. The adjusted profits per $ 3.22 per share were higher than the expected $ 2.27 analyst. In addition, the company has increased its profit margins – it is not a small thing when inflation drives the prices of parts on the roof.
In response to a strong earnings report for the first quarter, TSLA stock emerged the next day. The meeting was short-lived, however, as the market reacted to Elon Musk’s ongoing Twitter game.
One New Concern, But It Must Be Temporary.
The month of May has begun with one disturbing sign and this time it has nothing to do with Twitter.
It was reported over the weekend that many Chinese EV manufacturers saw their April delivery drop down. The cause of the dramatic decline in production was the closure of Covid-19 which exacerbated the supply chain disruption. Some power vehicles (EV) have been hit by temporary closures.
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China is the world’s largest car market and is crucial to Tesla’s success. Last year, the company’s Shanghai Gigafactory produced almost 475,000 vehicles. Those EVs were set for the Chinese market, some were shipped to Europe.
Any news about Covid and the increase in supply chain disruption in China will be Tesla’s concern. Fortunately, any impact this may have on production will be temporary. The big picture of Tesla on the Chinese market will always be beautiful.
In view of the extended TSLA stock decline we have experienced throughout April, should you avoid it? Especially now that there are concerns about disruptions in the Chinese market?
Conversely, if you were thinking of adding shares to this EV star to your portfolio, now would be a great time. TSLA stocks declined sharply in April, and thanks to Elon Musk and Twitter – the disruption that will eventually go away. Even if the TSLA ends up taking news from China, that will be temporary.
What’s important is that TSLA stock has become a working machine, especially in the last two years. Battery-powered cars are on the rise and Tesla continues to dominate the market. TSLA earns an “A” rating in Portfolio Grader, and is well positioned to deliver long-term growth.
On the day of publication, neither Louis Navellier nor a member of the InvestorPlace Research Staff was solely responsible for this article (directly or indirectly) for any of the securities mentioned in this article.
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