

Investor's Corner
Tesla Q3 Earnings tempers analysts outlook as price targets lower
Tesla (NASDAQ: TSLA) Earnings tempered analyst outlooks on the electric automaker’s stock as one firm referred to the call as a “mini disaster,” and another questioned whether shares could be looked at from a growth perspective as CEO Elon Musk advised investors that the company would take a cautious attitude toward the future with uncertain macroeconomic conditions.
Tesla’s Q3 2023 Earnings Call was one of the most cautious and perhaps worrisome in years as the automaker admitted high-interest rates and future projects could yield what would be looked at as less-than-favorable for short-term investors.
Long-term Tesla permabulls could not be shaken from their firm stance that the company is set for monumental growth moving forward, and how could they? Musk continued to speak positively about overall growth for Tesla in terms of autonomy, AI, and cell production.
However, analysts are adjusting their 12-month price targets on the stock as Musk’s tone during the call was cautious and aware of the rough waters that lie ahead.
“I’m not saying things will be bad. I’m just saying they might be,” Musk said during the Call. “And I think like Tesla is an incredibly capable ship, but we need to make sure like as…if the macroeconomic conditions are stormy, even if the best ship is still going to have tough times. The weaker ships will sink.”
Musk acknowledged the rough waters that likely lie ahead for the Tesla ship, and waves will consist of high-interest rate environments, which will temper demand for its vehicles as consumers struggle to keep up with inflation and lengthy waits for Cybertruck to contribute positive cash flow for the company.
“We have seen the highest highs and some very challenging times from Tesla and Musk over the last decade, with last night’s quarter and conference call not an inspiring one for the bulls,” Wedbush’s Dan Ives wrote in a note.
“In a nutshell, we would characterize last night’s conference call as a ‘mini disaster’ as the Street wanted to get their arms around the falling margins and constant price cuts seen globally, but instead, we heard from a much more cautious Musk which focused on higher interest rates, FSD/AI investments, and highlighting the difficult path for Cybertruck production over the next 12 to 18 months.”
Ives pushed Wedbush’s price target on Tesla down to $310 from $350, citing a “more cautionary near-term dynamic for Musk & Co.”
Adam Jonas of Morgan Stanley shared similar sentiments, adjusting his price target from $400 to $380.
“How can we be overweight [on] Tesla despite the company’s caution on macro, consumer, Cybertruck and Mexico? Can a ‘growth stock’ work if earnings don’t grow in 2024?” he wrote.
Jonas and fellow Morgan Stanley associates characterized the call as “one of the most cautious Tesla conference calls we’ve heard in years.”
Musk announced that not only would Cybertruck confront Tesla with “enormous challenges” in terms of the initial production ramp and becoming cash flow positive, but that Gigafactory Mexico won’t be a “full tilt” effort until the global economic outlook becomes more stable.
It was not all bad. Model Y is trending to be the best-selling car in terms of revenue and unit value, Autopilot has driven over 500 million miles with Full Self-Driving beta, and energy storage was robust for the quarter. Cybertruck even got a date for the first deliveries, November 30.
However, analysts advise investors to be more cautious as Tesla will have more challenges over the next year. As Tesla is not immune to ones that will impact the global markets, and Musk’s cautionary tone for the Call was indicative of the tumultuous waters the automaker will face moving into 2024 and beyond.
Disclosure: Joey Klender owns Tesla stock.
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Elon Musk
Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.
Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.
Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.
However, it is worth mentioning that Tesla is not traded like a typical company, either.
Here’s what Sonnenfeld said regarding Tesla:
“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”
Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:
“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”
Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:
“I think from a trading perspective, it looks very interesting.”
Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.
Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.
Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.
Elon Musk
Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”
The remarks came as Tesla shares crossed the $400 mark on the stock market.

Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock.
The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.
Elon Musk’s nonstop work schedule
Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”
Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.
“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design.
“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post.
Wartime CEO
Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X.
With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
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