Tesla shares rose Thursday after the company reported third-quarter earnings that beat analysts’ expectations, giving investors and analysts some relief after a difficult period for the electric vehicle maker. Profit margins got a boost thanks to $739 million in automotive regulatory credit revenue, while automotive revenue rose 2% to $20 billion from $19.63 billion year-over-year. Shares also got a boost from comments by CEO Elon Musk. He said next year’s “vehicle growth” will run at a 20% to 30% clip. Analysts polled by FactSet forecast about 15%. Shares rose more than 10% in premarket. Tesla has been struggling lately, losing more than 18% this month. TSLA YTD mountain Tesla shares in 2024. But while analysts were pleased with the results, they were also cautious in Tesla and worried about the battered EV still having long-term questions to contend with. Here’s what Wall Street’s major outlets had to say about Tesla’s third-quarter results and where they see the stock going from here. Morgan Stanley, $310 per share price target Morgan Stanley’s Adam Jonas confirmed that investors are worried about Tesla’s growth trajectory may lower slightly after the third quarter earnings and Musk’s production forecast for 2025. Jonas stated the overweight rating on Tesla shares, and his price target. showing a 45% increase. “One of Tesla’s strongest prints in some time could signal a ‘bottom’ in auto earnings expectations (and sentiment?),” Jonas said on Wednesday. “More specific comments on ‘slight’ FY24 delivery growth and new-gen/low-cost product intros from 1H25 help address investor concerns about top-line growth.” Wells Fargo, $125 per share price target Wells Fargo is not a buyer after strong results, citing high valuations. Analyst Colin Langan reaffirmed his overweight rating on Tesla after the quarterly report. “Trading at 95x 2025 Street EPS, robotaxi is clearly driving TSLA mkt premium. After attending We, Robot Day, we still believe that promise will not be fulfilled until after 2030,” said Langan. “The lack of specifics makes us wary & requires a long and unknown regulatory approval process. Goldman Sachs, $250 per share price target Goldman Sachs analyst Mark Delaney said that a key measure of Tesla’s success moving forward is if the company can deliver on its promise of autonomous driving. The rating is neutral and the $250 per share price target represents about 17% upside. “We believe the report is a positive addition, with a stronger margin than expected,” Delaney said FSD (full self driving) and the target of vehicle delivery growth for 2025, and also margin sustainability.” Barclays, $220 per share price target Barclays has positive takeaways from the report but reaffirmed that questions remain around Tesla’s artificial intelligence and comprehensive driving initiatives. Analyst Dan Levy reaffirmed a neutral rating on Tesla with a price target of $220, or about 3% ahead.” Tesla posted a solid 3Q beat, reflecting an upward trend. While we believe the 3Q print does not change the fundamental debate about AI / AV strategy or the question of volume / potential 2025 for ‘Model 2.5,’ but it should be considered. positive because it reflects the current positive fundamentals, with the right estimate and may exceed the worst limit,” said Levy. Bank of America, raised the price target to $265 from $255 Analyst John Murphy reiterated the stock as a buy, raising the price target to $265 from $255 .That means Tesla is well positioned for a “second wave of growth,” Murphy wrote. Tesla said it expects 20-30% of unit volume growth in 2025 excluding exogenous events, the start of Cybercab production, the launch of a public hailing app. (Texas and possibly California), the delivery of batteries for the energy storage business from the Shanghai factory, the increase of capabilities in FSD, and the start of Semitruck production (2026 scale).
Tesla shares surged after EV earnings report. What analysts say
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