Tesla Inc TSLA beat earnings estimates and showed improving margins in the third quarter, along with a strong vehicle delivery outlook for 2025, which were among the highlights for analysts.
Tesla, Inc.'s stock surged post-earnings due to better-than-expected EPS and margins, highlighting its strong profitability and growth potential. Despite mixed reactions to the "We Robot" event, Tesla's innovative products and services could significantly boost future revenues and profitability. Tesla's improved efficiency and profitability metrics suggest potential for upward EPS revisions and stock price upgrades to the $300-350 range by 2025.
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Despite positive Q3 2024 results, Tesla, Inc.'s reliance on non-sustainable sources like regulatory credits and stock-based compensation makes its current valuation unjustifiable. Cash from operations was boosted by increased accounts payable and regulatory credits, which are not sustainable long-term. Tesla's growth projects like robotaxis and Optimus lack concrete profitability, making its high valuation speculative and risky.
Tesla stock (NASDAQ:TSLA) posted a better-than-expected set of Q3 2024 earnings. Revenue for the quarter rose 8% year-over-year to $25.18 billion a year earlier, while net income was up almost 17% to $2.17 billion.
Tesla shares soared roughly 19% Thursday morning, putting the stock on pace for its best day in more than three years, following reactions to its better-than-expected third-quarter earnings report. The company's profit margins in the third quarter were boosted by $739 million in revenue for automotive regulatory credit.
Craig Irwin, Roth MKM senior research analyst, joins 'Money Movers' to discuss Tesla's stock pop following its quarterly earnings results, what could've dressed up the quarter, and if Tesla's gross margins could climb again.
Investors are liking Tesla's latest report, but things could get even better in the future.
Aside from the underwhelming “Cybercab” announcement, Tesla, Inc. also has a lot to prove on the Optimus robotics front to justify the stock's sky-high valuation. At current valuations, Tesla stock is simply not worth the investment, while another top-performing stock is much more advantageously positioned to win big from the robotics secular growth story. Tesla shares are being downgraded to a “sell,” as investors are much better off owning a considerably cheaper technology stock instead.
Tesla Inc (NASDAQ:TSLA) stock vroomed 16% higher on the back of earnings that beat forecasts and with reassurance offered on profitability and mid-term growth. UBS said the results were "one for the bulls" and highlighted that Elon Musk's electric vehicle company increased auto gross margins, excluding green credits, rose to 17.1% from 14.6% in the second quarter, supported by driving costs per vehicle to a record low.
A surprise lift in automotive margins reversed the damage from the Robotaxi fallout, but its valuation is now far above even AI stars.
Tesla NASDAQ: TSLA is a good company, but that doesn't mean its stock price will have a significant rally anytime soon. The market for Tesla is valued in many different ways for many reasons, including its status as a vehicle OEM, an EV pure-play, a tech innovator, its energy business, AI, and the Elon Musk factor, to name just a few.