Tesla's stock is experiencing a wild ride. It has seen a dramatic rebound after its plunge in 2022. Here's the timeline of all the drama surrounding Tesla's stock, from Elon Musk’s Twitter wager to aggressive price cut strategies.

[TAG0][TAG4]

Tesla stock has been through many trials and tribulations in the last year, but it is now back on track.
The shares of Elon Musk's company have seen a sharp rebound this year after a record-breaking plunge in 2022.
Here is a timeline that shows the dramatic events that triggered Tesla's turbulent ride in the stock exchange over the past year.

Tesla stock is doing well this year.

It has already risen 64% in seven weeks and many analysts predict a further rise in shares of the electric vehicle maker. Keith Fitz-Gerald, a veteran Wal Street trader, sees the stock rising by 48%. Dan Levy from Barclays projects a 36% increase.

It's an amazing reversal in fortunes since 2022 when Tesla experienced a dramatic plunge in market value due to a series of dramatic events. These included the Federal Reserve's aggressive rate hikes and CEO Elon Tesla's $44 Billion Twitter takeover. Investors were scared.

The dramatic swings of investor sentiment have made the past twelve months the most turbulent for any prominent name in the equity market. After reaching a record high in 2021 at over $1.2 trillion, the market capitalization of EV makers plunged to $341 billion in 2022. It then rebounded to above $600 billion this week.

Here is a list of the key events that have fuelled Tesla's rollercoaster ride through the stock market.

March 2022: Tesla opens European plant

Tesla opened its first European factory in Berlin, Germany. The so-called Gigafactory was given the green light to produce 500,000 vehicles annually and employ 12,000 people. The launch caused shares in the electric vehicle manufacturer to surge nearly 8%, followed by a rally that lasted until month-end.

[TAG1][TAG5]

April 2022: Musk's $44 Billion Twitter Deal

Musk reached a $44 billion deal last April to purchase Twitter. Tesla shares plunged by more than 12 percent to erase $126 billion worth of value in one day. Investors feared that Musk, a billionaire CEO, might sell his stock in the electric vehicle manufacturer to fund the takeover.

Tesla shares lost 23% in April, even though the deal was signed.

[TAG2][TAG6]

May 2022: Twitter tantrums keep going

Tesla stock was under pressure in May, as investors digested Musk’s deal to take Twitter public.

In a new twist, Musk threatened to cancel the deal, claiming that the social-media giant was resisting his attempts to study fake accounts. After Musk's announcement that the deal was being held, shares in the EV maker rose by more than 5%.

October 2022: Delivery targets missed

After reporting third-quarter results that were below analysts' expectations, the automaker's shares fell throughout October. According to the company, it produced 365,923 vehicles in the third quarter and delivered 343,830 units during the same period. However, this was below the expectations of around 358,000.

The stock fell 8.6% in the report to its lowest level in three years.

November 2022: Twitter Angest Returns

Musk was officially the Twitter owner by the end of October. The Tesla stock continued to fall into November after investors feared Musk would lose his focus on Tesla because he was distracted by his social media responsibilities.

Musk announced that he had sold $4 billion worth Tesla shares to close his Twitter buyout. Musk's shares fell to their lowest level for 2 years after the news.

December 2022 – Fed tightening, China woes

Tesla stock fell by approximately 65% at the end of December due to a combination factors, including Musk's tweet purchase and the gloomy economic background. There was also a slowdown from China, which is the largest market for electric vehicles, and a decrease in demand.

Musk cited the Federal Reserve's aggressive interest rate increases, aimed at cooling inflation, as the main reason for Tesla's declines. Rising interest rates can be a burden on growth stocks like Tesla, as they increase the cost of borrowing, which in turn reduces the company's cash flow.

To defend himself against the stock plummet, the second-richest man in the world tweeted: "In simple words: As bank savings account interest rate, which is guaranteed, starts to approach stock market returns which are not guaranteed,"

COVID-19 infected in China caused a drop in production at the Shanghai factory. This is the largest global plant in terms of output. Tesla shares fell after the company said it would reduce its production schedule at the Shanghai plant.

January 2023 – A new year, a brand new Tesla

Investor expectations have been fueled by a steady fall in inflation, which has encouraged investor hopes that the Fed will stop raising interest rates or start cutting them later this decade – which has been good news to the EV maker.

This, along with record profits in the quarterly reports, helped to fuel a new rally in Tesla. The company's market capitalization soared above $500 billion.

[TAG3][TAG7]

February 2023: Price reductions spark EV demand

Tesla has been able to power higher this month than ever before. This is due to a series recent price cuts by Tesla, which were seen as reviving demand in China.

According to the China Passenger Car Association data, 55,796 cars were sold in China in January. This is an 18% increase over December and 10% over a year ago.

A wider US tax credit for electric cars also helped the stock rise. The Inflation Reduction Bill allows more Tesla vehicles to qualify for EV tax credits up to $7,000.

Business Insider has the original article.

—————————————————————————————————————————————
By: ztayeb@businessinsider.com (Zahra Tayeb)
Title: Tesla’s stock is on a crazy ride, with a stunning rebound from 2022’s freefall. Here’s a timeline of the drama that drove it, from Elon Musk’s Twitter gamble to aggressive price cuts
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-timeline-elon-musk-twitter-deal-price-cuts-2023-2
Published Date: Sun, 19 Feb 2023 10:00:00 +0000