The Tesla Inc (NASDAQ: TSLA) share price has fallen 67.2% this year and looks set to end the year near its current lows. The question on most investors' minds is, can Tesla stock recover in 2023? Let’s find out.
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First, there is a good chance that Tesla will rebound next year if Elon Musk stops selling his Tesla share to fund his Twitter operations. Luckily for investors, Musk yesterday assured investors that he would not sell any Tesla stock in the next 18 to 24 months.
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However, this begs the question, will Elon Musk keep his word this time after his recent stock sales that have triggered a 25.7% decline in Tesla shares over the past month? The short answer is that we can never be too sure about Musk.
Still, we can say that he will be highly motivated not to sell his Tesla shares given the negative impact his sale of over $39 billion of Tesla stock has had on the company and his net worth.
Elon Musk has also agreed to step back from his role as Twitter’s CEO, which should appease Tesla investors, many of whom think that his new role at Twitter has deprived the EV company, which is facing some challenges, of his attention.
Therefore, many would like to see Musk pay more attention to Tesla, the golden goose responsible for much of his success and net worth, instead of Twitter, which is headed for bankruptcy unless things change significantly at the social media company.
If Musk can achieve these two simple goals, Tesla’s shares could rebound in 2023. The EV company’s shares could also rebound if it meets its delivery targets next year despite the looming global recession, expected in the first half of 2023.
While Tesla shares may not rise much in H1 2023, the situation may change significantly in the second half as the global economy recovers, boosting consumer incomes, which could lead to more sales of Tesla’s EV.
2023 promises to be a daunting year for the global economy, but there is a good chance that Tesla shares could weather the storm better than others.
*This is not investment advice.
The Tesa stock price chart.
The Tesla stock price was trading up 1.72% at $127.51, rising from Thursday’s closing price of $125.35.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.