Tesla (NASDAQ: TSLA) is getting some well-deserved price target upgrades from Wall Street analysts after it reported what will likely be looked at as its key earnings call for 2024.
Tesla reported a massive beat in earnings per share, while it missed revenue slightly last Wednesday. Its biggest surprise came from its automotive margins, which were up to levels that both analysts and investors wanted to see.
Margins for the automotive side of Tesla’s business were right at 17.05 percent. It was a strong showing from the automaker, which has seen shares explode over 25 percent in the past five trading days.
Tesla stock spikes over 20% on strong margins and 2025 guidance
With the strong earnings, Tesla is getting several price target upgrades from analysts. Their reasoning comes as the company is heading into 2025 with a lot of momentum that surely could be bolstered with the plan to bring more affordable models in the first half of next year.
Tesla shares get $285 price target from Daiwa
Daiwa Securities said it was raising its price target from $225 to $285, maintaining a neutral rating on shares.
The firm said the increase was mainly driven by the company’s strong Q3 beat and its performance with both automotive and energy operations. It also believes the Cybertruck, which just became profitable for the first time, energy storage in China, and the ramp of the 4680 battery program will help improve margins even further.
Tesla price target gets small boost from CFRA
CFRA analyst Garett Nelson boosted his price target to $225 from $220 on Thursday.
Nelson believes expectations were low but admits the beat was a sign of Tesla’s strong Q3 performance. Additionally, he advises investors to be wary of the gross margin because it may not be as sustainable:
“In our view, expectations were low heading into the release after four consecutive bottom-line misses and a robotaxi day that left investors with more questions than answers. The key question is the sustainability of Tesla’s Q3 gross margin.”
New price target and stock rating for Tesla shares
Canaccord Genuity analyst George Gianarikas maintained the ‘Buy’ rating Tesla shares had before the strong earnings call, but also boosted the price target from $278 to $298, citing strong profits, good margins, and a non-GAAP EPS that indicated a positive financial trajectory.
In the long-term, Gianarikas believes Tesla will have more opportunities for growth as its vehicle programs become more robust with more models Additionally, autonomy, AI, and energy storage are all key indicators for a bullish sentiment the firm holds on Tesla shares.
Tesla shares are trading at $270.61 at the time of publishing, which was 11:37 a.m. on the East Coast.
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