- Tesla shares climbed 11% Thursday.
- The electric carmaker posted its fourth-quarter earnings after Wednesday’s closing bell, beating Wall Street’s expectations.
- CEO Elon Musk is testifying in a trial over allegations of securities fraud.
Tesla rallied Thursday as investors looked past CEO Elon Musk’s ongoing trial to pile into the stock after it beat Wall Street’s revenue and profit expectations for the fourth quarter.
Shares climbed 11% to $160.32 shortly after the opening bell, after the electric carmaker posted earnings per share of $1.19 for the three months up until December 31, 2022. That comfortably beat analysts’ forecast of $1.05, according to data from Refinitiv.
Tesla’s revenue also grew 37% year on year to $24.3 billion for the fourth quarter, which narrowly beat analysts’ $24.1 billion target and could show shareholders that recent aggressive price cuts have helped to revive faltering demand. Musk said on an earnings call after Wednesday’s closing bell that Tesla’s “price changes really [made] a difference” in the fourth quarter of 2022.
These 13 members of Congress have traded stock in Elon Musk’s companies during 2022
Rep. Nancy Pelosi, a Democrat from California
Rep. Pat Fallon, a Republican from Texas
Sen. Sheldon Whitehouse, a Democrat from Rhode Island
Rep. John Garamendi, a Democrat from California
Rep. Mike Garcia, a Republican from California
Rep. Josh Gottheimer, a Democrat from New Jersey
Rep. Kim Schrier, a Democrat from Washington
Rep. Vicente Gonzalez, a Democrat from Texas
Rep. Chris Jacobs, a Republican from New York
Rep. Kathy Manning, a Democrat from North Carolina
Rep. Ro Khanna, a Democrat from California
Rep. David McKinley, a Republican from West Virginia
Rep. Robert Aderholt, a Republican from Alabama
“Tesla’s troubles in recent times have really put the brakes on what had been a rapidly accelerating share price but its latest earnings report has helped charge things up again,” AJ Bell’s investment director Russ Mould said Thursday.
“Posting its best ever quarterly revenue and profit and beating expectations was always likely to be rewarded by shareholders, and so it proved with the shares making material gains in after-hours trading,” he added.
Tesla’s gains come after Musk testified in a high-profile San Francisco trial sparked by a class-action shareholder lawsuit alleging he committed securities fraud in 2018.
Investors suing the world’s second-richest man say he illegally manipulated Tesla’s stock price by tweeting that he had “funding secured” to take the company private at $420 a share. The deal never happened.
So far in his testimony Musk has accused the governor of Saudi Arabia’s $620 billion wealth fund of “ass-covering” — and said that he’d have cashed in on SpaceX stock to take Tesla private.
Read more: Elon Musk on Saudi ‘ass-covering’ and 10 other things the Tesla boss said to defend himself in the ‘funding secured’ trial