Boom! Why has Tesla stock rocketed 68% so far in 2023?

It's already been a year to remember for the electric vehicle giant.

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Key points

  • Tesla stock has rocketed 68% since the final close of 2022 to last trade at US$207.32
  • It's seemingly been driven higher by the EV giant's earnings for the December quarter
  • Meanwhile, the company posted disappointing full-year deliveries in early January and a group of shareholders took Musk to court

Stock in electric vehicle (EV) icon Tesla Inc (NASDAQ: TSLA) has had an astonishing start to 2023, recovering much of its 2022 losses within six weeks.

It tumbled 65% last year as soaring inflation drove interest rates higher and celebrity CEO (read: Technoking) Elon Musk staged a dramatic US$44 billion takeover of Twitter.

Tesla stock last traded at US$207.32.

That's a far cry from its final close of 2021 – US$352.26 – but a whopping 68% higher than it ended 2022 – US$123.81.

So, what's been bolstering the tech giant's share price so far this year? Let's take a look.

Why has Tesla stock soared into the new year?

The first six weeks of 2023 haven't been entirely easy for those invested in Tesla stock. Though, it's ultimately been a fruitful year so far.

The company started the year out on arguably the wrong foot, announcing it had delivered a potentially eye-popping 1.3 million EVs in 2022. But, despite marking a new record, that figure fell short of Musk's previous pledge to increase deliveries by 50% annually.

Musk also faced a legal challenge in recent weeks, with a group of Tesla shareholders taking the billionaire to court on allegations he misled investors by tweeting that he was taking the company private in 2018. A jury cleared Musk of any wrongdoing, the Guardian reports.

But it wasn't the win that's seemingly sent Tesla stock rocketing in 2023. It's leapt nearly 44% since the company dropped its quarterly results on 25 January.

Tesla posted US$1.19 of adjusted earnings per share (EPS) for the three months ended December, beating average analyst expectations of US$1.13, The Motley Fool reports. Meanwhile, its revenue for the quarter leapt 37% year-on-year to US$24.3 billion.

That saw its full-year unaudited adjusted EPS come in at US$4.07 while its revenue soared 51% to around US$81.5 billion. Its profits also nearly doubled to reach US$12.6 billion.

Not to mention, investors are likely looking forward to Tesla's next earnings release after it announced it's cutting 20% from the cost of its Model 3 and Model Y in the United States and Europe last month, my Fool colleague Mitch reports.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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