Today, Tesla (NASDAQ:TSLA) stock is back to falling after an exciting few days. This week, the electric vehicle (EV) innovator reported earnings for the first quarter of 2022. Although some investors were skeptical, the company showed strong earnings and revenue growth, beating analyst predictions on both the top and bottom lines. CEO Elon Musk also took time away from his aggressive Twitter (NYSE:TWTR) acquisition campaign to hop on the earnings call. Musk updated shareholders on the quarter and Tesla’s plans for the road ahead.
These Q1 numbers sent TSLA stock up. And, while it has dipped again, Musk gave investors plenty to be optimistic about on the call. For example, the CEO emphasized that the company’s Shanghai factory wouldn’t just be reopening soon, it would be “coming back with a vengeance.”
Investors can take some comfort in these positive production projections for the year ahead. Still, the rest of the investing world is probably more focused on Musk’s plans for Twitter. The social media giant still has not issued any updates on the potential deal.
So, as this week winds to a close, let’s take a look at the top headlines that TSLA stock investors need to be following.
Top Headlines for TSLA Stock Investors
Elon Musk is worth $270 billion. He’d buy Twitter with an IOU.
In a week when Tesla reported earnings, Elon Musk’s quest to acquire Twitter continued to dominate news coverage. If his offer is successful, however, it could change the face of social media. It would also effectively change Musk’s entire business empire, likely driving up TSLA stock in the process. The CEO hasn’t had an easy time negotiating the history-making acquisition. There has also been speculation that he cannot acquire Twitter without selling off some of his TSLA shares. As of now, a lot’s riding on how Musk plans to finance the deal.
Will Tesla Be the Next Netflix? It Could Be Another Google.
This has been a good week for TSLA, but a much more complicated one for other companies. When Netflix (NASDAQ:NFLX) reported disastrous earnings this week, speculation quickly rose that Tesla could meet the same fate down the road if growth slowed. While there’s no guarantee such a scenario will play out, famed investor Michael Burry thinks it may happen. Burry tweeted that increasing competition will push Tesla in that direction. However, industry expert Al Root believes that something else might transpire; Tesla’s expanding holdings may mimic the much more profitable path of Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
Tesla’s Market Share Keeps Growing And Growing
Another important growth area that Tesla provided updates on this week is its international market share. As with earnings and revenue, the news was good. According to the data provided, market share growth in the U.S. and Canada has reached 3% for Tesla. In Europe and China, it’s nearing 2%. Given the drawbacks Tesla experienced due to the Shanghai factory shutdown, that’s no small thing. As InsideEVs reports, “the company is consistently increasing its market share, despite the volatile global situation in terms of supply chains.” Investors can feel good about these numbers. Tesla’s international expansion efforts appear to be working.
Tesla record profit blows away estimates
This next headline does an excellent job summarizing Tesla’s recent Q1 earnings report. In the face of supply-chain constraints and negative market forces, the company continued its track record of posting record-high profits. Tesla’s earned adjusted income was $3.7 billion, sufficiently higher than the predicted $2.6 billion. While it had already reported record-setting sales, the recent report shows Tesla can keep meeting rising demand. Plus, with its new factories in Austin, Texas and Berlin already rolling out cars, it’s better positioned than ever to soar. The next earnings report could boast even better numbers than Q1.
Tesla Insurance Adds 3 More States, Plans to be Nationwide This Year
With so much focus on Tesla’s earnings and Musk’s Twitter deal, it’s easy to overlook the less-exciting stories. However, investors should also know that Tesla is furthering its mission of insuring its vehicles. While the InsureMyTesla initiative was initially launched for drivers in Hong Kong and Australia, it’s now spreading to the United States. Tesla’s website notes that the insurance is not based “on information that has little to do with driving” but instead on a safety score the company calculates. This score is based on things like “aggressive turns” and “hard stops.” The insurance is now available to drivers in Colorado, Oregon and Virginia.
Cathie Wood Sells $66M In Tesla Stock On Earnings Day
This week, fresh off of doubling down on TSLA stock, famed investor Cathie Wood offloaded some shares. As InvestorPlace‘s Eddie Pan reports, Wood sold $66 million worth, totaling 67,884. Pan also notes, though, that Wood thinks Tesla’s “potential robotaxi business will be very profitable and contribute more than 50% of Tesla’s value by 2026.” This move to sell shouldn’t worry investors, either. TSLA stock didn’t dip too much today — and it’s likely to be back in the green on Monday. Despite selling, Wood still sees Tesla’s growth potential. Other investors shouldn’t ignore that.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
