Tesla's stock has been soaring since May 2013

A 33% increase in the company's shares this week was its best week since May 2013, and the second best week in the company's history.

Earlier this year, Tesla shares fell 65% in 2022, the worst fall in the company's history. Despite a decline of more than 40% in the past six months, Tesla shares rose 11% to close at $177.88 on Friday, following a decline of more than 40% in the preceding six months. As a result of a 65% decline in Tesla shares during 2022, it marked the worst year in 12 years for Tesla shares.

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A positive report on Tesla's earnings report for the fourth quarter helped to support Tesla's rally in the week leading up to its earnings report. During a conference call with investors and analysts on Monday, Tesla Motors' CEO, Elon Musk, announced that Tesla was on track to produce 2 million vehicles by 2023, and that demand would support sales as well.

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1.8 million vehicles are expected to be produced this year, according to the official guidance. The company has not changed its compound annual growth rate of 50% set in the past.

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Tesla recorded a deferred revenue of $324 million as a result of the company's driver assistance systems. It was expected that due to a significant drop in prices over the past few months, the company would experience an increase in inventory and a decrease in demand in December and January.

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Tesla's earnings were met with mixed reviews from analysts. Toni Sacconaghi, a Bernstein analyst, wrote in a note dated Thursday that investors should be encouraged by the company's growth story. It is Sacconaghi who is outperforming the stock with a rating of underperform on the stock.

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The company announced earlier this month that fourth quarter deliveries and production fell short of expectations.

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Tesla's stock rose as a result of a broader market rally. A 2.2% gain was recorded in the S&P 500 index this week, while a 4.3% gain was recorded in the Nasdaq.

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Moreover, other electric vehicle manufacturers in the U.S. also saw their shares rise as a result of the news. Rivian's shares rose 22% during the week, while Ford and General Motors both experienced an increase of over 7% each, so it was a good week for Rivian.

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It is rumoured that the Public Investment Fund, a sovereign wealth fund from Saudi Arabia, is interested in taking Lucid private this Friday. The fact that Tesla underperformed last year was not enough to prevent Musk from taking advantage of the opportunity to buy Twitter for $44 billion in October, which allowed him to focus his attention on Twitter in the wake of Tesla's decline. As a result of Musk's leadership, there have been a number of mass layoffs and a loss of advertisers as a result of his actions. In U.S. markets, Tesla is the second most shorted stock in terms of shorting shares, which means that there is a large number of investors betting on the decline of the stock's value. According to S3 Partners, more than 94 million of the automaker's shares are shorted, out of its total shares outstanding.

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Despite the rally, short sales have continued, said S3 managing director Ihor Dusaniwsky. Tesla's appreciation, according to short sellers, will lead to a short-term reversal due to its overheated and overbought status. S3 Partners estimates short sellers have lost $4.3 billion in the last week, with the number of shares shorted increasing 3.9%.