Investor's Corner
Tesla (TSLA) rallies +4.5% as Wall Street shrugs off Q4 delivery miss
While the initial after market reaction to the miss in Q4 2016 production and deliveries was negative, reaction from Wall Street tell a different story as the company’s stock (Nasdaq: TSLA) quickly rallied to a 4.5% gain.
We’ve provided some market reactions from analysts watching the stock.
Colin Rusch from Oppenheimer reiterated a Hold rating on Tesla and said that “with TSLA announcing shipments of ~22.2k cars in 4Q16, we are expecting a better- than-feared trade over the next couple of days. While the company missed its 4Q16 shipment guidance by over 10% for the quarter, we believe expectations had dropped significantly below guidance due to media reports of slow sell-through. We anticipate investors will now shift focus to the Gigafactory ramp, timing of Model 3 production, and the company’s ability to generate cash from operations. We continue to be cautious about potential margin drag given simultaneous Model 3 and Gigafactory ramp plus purchase commitments for solar modules from its Buffalo facility.”
Lou Whiteman of TheStreet.com in a piece titled “Wall Street Still Loves Tesla and This Chart Proves It” stated that “While the results provided fresh fodder for the bears, they didn’t do enough to crush Wall Street’s long love affair with Elon Musk’s baby. Investors may also be optimistic ahead of a previously-planned analyst tour of the company’s Gigafactory battery facility scheduled for Wednesday.” Additionally he positively stated that “The total deliveries, though a miss, by far surpassed 2015’s total of about 50,000.” “The company has a history of missing internal deadlines, but simply showing progress towards bringing the Model 3 to market should be enough to keep bulls on board and allow Tesla to return to the capital markets to raise more cash if needed.”
TheStreet.com has been bearish on Tesla for a long time, and Lou warned that “even if the Model 3 arrives on time, there are still questions about whether the company can turn a profit on the vehicle. Tesla has targeted a base price of $35,000 for the vehicle, but skeptics including Stanphyl Capital managing member and portfolio manager Mark Spiegel estimate it might cost the company upwards of $48,000 per unit to produce the car.”
Jim Cramer, also of TheStreet.com, said on CNBC’s “Squawk on the Street” that “the market isn’t having a stronger reaction because the company seems to be coated with Teflon, meaning that it can withstand things like a lower-than-expected delivery number.” “It should be called Teflon Motors because I don’t think this will matter. Tesla seems to be “charmed,” and it’s still making a lot of cars, like Jay Leno noted,” Cramer noted. “In particular, Tesla’s sales numbers in China jumped dramatically this past year, which is “important. But regardless, people are not going to react to this news. The analysts aren’t going to change their view on it. I think that’s the important way to look at it. They’re just not going to change. No ‘buy’ to ‘holds.’”, Cramer reiterated.
In a Marketwatch story titled “Here’s why Tesla is Baird’s top stock-market pick for 2017“, analyst Ben Kallo was quoted saying that he”expects the company’s energy business and the launch of the Model 3 electric sedan will exceed expectations.” He went on saying that “Tesla energy storage business and growth opportunity is not currently reflected in share prices”. Ben named Tesla Motors (NASDAQ: TSLA) his “top pick for 2017” and reiterated an Outperform rating and price target of $338. He “does not believe the Q4 delivery number (expected by Jan. 3) will be an overhang and recommends buying shares heading into 2017 as they believe the stock will make new highs.
As I predicted on Tuesday, several unrelated reports covered the positive fact that Tesla finally begun producing batteries at the Gigafactory, lead by information coming from Tesla’s invite-only ‘investor event’. Everyone from Reuters to Bloomberg and the WSJ reported this news in their opening pages.
Cadie Thompson reported on Business Insider that Tesla began production of battery cells at its Gigafactory on Wednesday. “The battery cells currently in production will be used for Tesla’s rechargeable home battery, Powerwall 2, as well as its massive commercial battery, Powerpack 2. The electric-car maker said in a statement that it aims to begin production of battery cells for the Model 3, its first mass-market car, sometime in the second quarter.”
Tom Randall of Bloomberg, in an article titled “Tesla Flips the Switch on the Gigafactory” stated that “Musk meets a deadline: Battery-cell production begins at what will soon be the world’s biggest factory—with thousands of additional jobs.”
He goes on stating that “the Gigafactory has been activated. Hidden in the scrubland east of Reno, Nev., where cowboys gamble and wild horses still roam—a diamond-shaped factory of outlandish proportions is emerging from the sweat and promises of Tesla CEO Elon Musk. It’s known as the Gigafactory, and today its first battery cells are rolling off production lines to power the company’s energy storage products and, before long, the Model 3 electric car.”
Tom added that “by 2018, the Gigafactory, which is less than a third complete today, will be staffed by 6,500 full-time Reno-based employees and singlehandedly double the world’s production capacity for lithium-ion batteries, according to a new hiring forecast from Tesla.”
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
Elon Musk
Tesla analyst: ‘near zero chance’ Elon Musk’s $1T comp package is rejected
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
A Tesla analyst says there is “zero chance” that CEO Elon Musk’s new compensation package is rejected, a testament to the loyalty and belief many shareholders and investors have in the frontman.
Tesla investors will vote on November 6 at the annual Shareholder Meeting to approve a new compensation package for Musk, revealed by the company’s Board of Directors earlier this month.
The package, if approved, would give Musk the opportunity to earn $1 trillion in stock, an ownership concentration of over 27 percent (a major request of Musk’s), and a solidified future at the company.
The Tesla Community on X, the social media platform Musk bought in 2023, is overwhelmingly in favor of the pay package, though a handful of skeptics remain.
Nevertheless, the big pulls of this vote are held by proxy firms and other large-scale investors. Two of them, Institutional Shareholder Services (ISS) and Glass Lewis, said they would be voting against Musk’s proposed compensation plan.
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
Today, the State Board of Administration of Florida (SBA) said it would vote in favor of Musk’s newly-proposed pay day, making it the first large-scale shareholder to announce it would support the CEO’s pay.
One analyst said that Musk’s payday is inevitable. Gary Black of the Future Fund said today there is a “near-zero chance” that shareholders will allow Musk’s pay package to be rejected:
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
He added an alternative perspective from Wedbush’s Dan Ives, who said that he had a better chance of starting for the New York Yankees than the comp package not being approved.
There is a near zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting. As Wedbush analyst Dan Ives (@divestech) colorfully put it in a Yahoo Finance interview on October 23rd: “I have a better chance of starting for…
— Gary Black (@garyblack00) October 27, 2025
Black’s the Future Fund sold its Tesla holdings earlier this year. He explained that the firm believed the company’s valuation was too disconnected from fundamentals, citing the P/E ratio of 188x and declining earnings estimates.
The firm maintained its $310 price target, and shares were trading at $356.90 that day.
Shares closed at $452.42 today.
The latest predictions from betting platform Kalshi have shown Musk’s comp package has a 94 percent chance of being approved:
— Kalshi (@Kalshi) October 20, 2025
Tesla analysts are expecting big things from the stock (NASDAQ: TSLA) after many firms made price target adjustments following the Q3 Earnings Call.
Last Wednesday, Tesla reported earnings with record revenue but missed EPS estimates.
It blew delivery expectations out of the water with its strongest quarter in company history, but Tesla’s future relies on the development of autonomous vehicles, robotics, and AI, which many bullish firms highlight as major strengths.
The earnings call reiterated those points, along with the belief that Tesla CEO Elon Musk should be rewarded with a newly proposed pay package that would enable him to gain $1 trillion in wealth if he comes through on a lengthy list of performance tranches.
Nine Wall Street firms made adjustments to their outlook on Tesla shares in the form of price target increases since last Wednesday’s call, all of which are indications of big expectations for the stock moving forward.
Here are the nine firms that made moves:
- Truist – $280 to $406, reiterated Hold rating
- Roth MKM – $395 to $404, reiterated Buy rating
- Cantor Fitzgerald – $355 to $510, reiterated Overweight rating
- Deutsche Bank – $435 to $440, reiterated Buy rating
- Mizhuo – $450 to $485, reiterated Outperform rating
- New Street Research – $465 to $520, reiterated Buy rating
- Evercore ISI – $235 to $300, reiterated In Line rating
- Freedom Capital Markets – $338 to $406, upgraded to Hold rating
- China Renaissance – $349 to $380, reiterated Hold rating
The boosts in price target are largely due to Tesla’s future projects, as Roth MKM, Cantor Fitzgerald, Mizuho, New Street Research, and Evercore ISI all explicitly mention Tesla’s autonomy, robotics, and AI potential as the main factors for its price target boosts.
Cantor Fitzgerald raises Tesla PT To $510, citing Cybercab, Semi, and AI momentum
It is no surprise that many firms are adjusting their outlook on Tesla shares considerably in an effort to prepare for the company’s transition to even more of a tech company than a car company.
The issue with many analysts is that they treat the company’s vehicle deliveries as the main indicator of value.
However, Tesla has a robust energy division, which was a major contributor to the company’s strong margins and gross profit in Q3, as well as its prowess in robotics and AI.
Additionally, the company is seen as a key player in the autonomy field, especially after launching driverless rides on a Robotaxi platform in Austin and expanding a similar program in the Bay Area.
Tesla shares were up over 5 percent at 12:18 p.m. on the East Coast.
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
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