Tesla (TSLA) stock rallied more than 13% at the start of trading Wednesday even as the electric vehicle (EV) maker disclosed weaker-than-expected earnings and revenue for its first quarter.
In the three months ended March 31, Tesla reported revenue of $21.3 billion and earnings per share (EPS) of 45 cents, representing declines of 8.7% and 47.1%, respectively, from the year-ago period. The company attributed the year-over-year declines to a reduced average selling price of its vehicles and a decline in vehicle deliveries.
The results came up short of analysts' expectations for revenue of $22.2 billion and earnings of 51 cents per share, according to CNBC.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, the weaker-than-anticipated results were overshadowed by comments from Tesla CEO Elon Musk about the company's planned launch of lower-cost models and its robotaxi service.
"We've updated our future vehicle lineup to accelerate the launch of new models ahead [of the] previously mentioned start of production in the second half of 2025,” Musk said on Tesla's conference call. "These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms, and we'll be able to produce on the same manufacturing lines as our current vehicle lineup."
Musk went on to provide an update on Tesla's robotaxi plans, which he said will be called the Cybercab.
"Think of it as a combination of Airbnb and Uber meaning that there will be some number of cars that Tesla owns itself and operates in the fleet," Musk said, describing the Cybercab service. "There will be some number of cars and then there'll be a bunch of cars where they're owned by the end user. That end user can add or subtract their car to the fleet whenever they want, and they can decide if they want to only let the car be used by friends and family or only buy five-star users or by anyone at any time they could have the car come back to them and be exclusively theirs like an Airbnb."
The launch and expansion of the Cybercab service is the key driver behind many of Wall Street's more bullish price targets on Tesla stock, including Ark Invest's $2,000 price target.
Is Tesla a Buy, Sell or Hold?
According to S&P Global Market Intelligence, the consensus analyst target price for Tesla stock is $186.95, representing implied upside of 13% to current levels. Meanwhile, the consensus recommendation is a Hold.
Aside from Ark Invest, Wedbush is one of the more bullish firms on the Magnificent 7 stock.
"The focus for us and investors was around the blueprint and roadmap for growth as Musk and Tesla are facing a Category 5 storm after a Cinderella ride the last few years," Wedbush analyst Daniel Ives said in an April 24 report following the earnings release. "Last night in a much needed conference call Elon Musk finally stepped up as the adult in the room and laid the foundation for Tesla's growth strategy with most importantly a lower cost vehicle now slated for 2025 production and delivery."
Ives rates TSLA stock Outperform (the equivalent of Buy) and has a $275 price target on the shares.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
FAQs
Tesla (TSLA) reported worse-than-expected first-quarter earnings and revenue late Tuesday. Investors appeared not to care, sending TSLA shares jumping 12% Wednesday after Chief Executive Elon Musk signaled "more affordable" new models are on the way.
Why is Tesla stock rising today? ›
Tesla stock, up 15% hits highest level since early March
Tesla (TSLA) stock soared at the open on Monday following reports that CEO Elon Musk won Chinese approval to deploy the automaker's Full Self-Driving (FSD) autonomous software on the mainland.
Are Tesla earnings expected to be good? ›
That signals another year of earnings declines for this growth stock. Analysts currently expect Tesla earnings per share of just $2.48 in 2024, according to FactSet. That would be more than a 20% decline vs. $3.12 in 2023.
Why have Tesla shares jumped? ›
Shares in Tesla (TSLA) surged in morning trading, after Chief Executive Elon Musk secured a crucial victory on a quickfire trip to China. Beijing signaled its blessing for Tesla to roll out its advanced driver-assistance service in China, the carmaker's second-biggest market.
Is Tesla a buy or sell right now? ›
Tesla is a Zacks Strong Sell
Tesla is a Zacks Rank #5 (Strong Sell). The Zacks Rank is based on changes to analyst earnings estimates. It has a Zacks Strong Sell recommendation due to the cuts to the earnings estimates.
What is the Tesla prediction for the next week? ›
What is the Tesla stock forecast? The Tesla stock forecast for tomorrow is $ 179.46, which would represent a 0.04% gain compared to the current price. In the next week, the price of TSLA is expected to decrease by -4.21% and hit $ 171.84.
What is the forecast for Tesla? ›
The average price target for Tesla is $173.29. This is based on 32 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $310.00 ,the lowest forecast is $22.86. The average price target represents -6.21% Decrease from the current price of $184.76.
What is Tesla's first quarter earnings 2024? ›
TSLA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS |
|---|
| Jul 17, 2024 | 2024 (Q2) | 0.59 / - |
| Apr 23, 2024 | 2024 (Q1) | 0.49 / 0.45 |
| Jan 24, 2024 | 2023 (Q4) | 0.73 / 0.71 |
| Oct 18, 2023 | 2023 (Q3) | 0.73 / 0.66 |
6 more rowsOverall, 43% of analysts covering Tesla stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Tesla shares is about $183 each.
How much does Tesla move after earnings? ›
Shares have moved an average of about 10% following the past four quarterly reports. The stock has dropped each time. The last time Tesla stock rose after an earnings report was after the fourth quarter of 2022.
What is a Short Squeeze? Short squeeze is a term used to describe a phenomenon in financial markets where a sharp rise in the price of an asset forces traders who previously sold short to close out their positions. The strong buying pressure “squeezes” the short sellers out of the market.
Who is the CEO of Tesla? ›
Elon is Technoking of Tesla and has served as our Chief Executive Officer since October 2008 and as a member of the Board since April 2004.
What do zacks think of Tesla? ›
The financial health and growth prospects of TSLA, demonstrate its potential to underperform the market. It currently has a Growth Score of F. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors.
Is amzn a buy right now? ›
Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.
What is the target price for Tesla in 2025? ›
By 2025 Tesla Stock (TSLA) can reach $500 more than 260% in just 1 year, That's the Power of Tesla!
What is the prediction for Tesla stock in 2025? ›
Tesla Stock Forecast 2024 & 2025
They believe an upside scenario for the stock over the next 12 to 24 months could be ~$300 using a multiple of 50x to 60x applied to the company's 2026E EPS, while a downside scenario could be ~$65 to $85 using a multiple of 30x applied to Tesla's 2024 EPS.
Is Tesla doing layoffs? ›
The layoffs first started last month, when Tesla began laying off what was said to be at the time 10 percent of the company's global workforce of 140,000 people. The layoffs included Tesla's head of EV charging, Rebecca Tinucci, as well as her entire 500-person team.
