Tesla shares soared Thursday after the company reported third-quarter earnings that beat analyst expectations , giving investors and analysts some relief after a tough stretch for the electric vehicle maker. Profit margins got a boost thanks to $739 million in automotive regulatory credit revenue, while automotive revenue ticked up 2% to $20 billion from $19.63 billion year over year. The stock also got a boost from comments by CEO Elon Musk. He said that “vehicle growth” next year will run at a 20% to 30% clip. Analysts polled by FactSet forecast roughly 15%. Shares were up more than 10% in the premarket. Tesla has struggled of late, losing more than 18% this month. TSLA YTD mountain Tesla stock in 2024. But while analysts were pleased with the results, they’re also cautious on Tesla and worry the battered EV maker still has longer-term questions to contend with. Here’s what the major shops on Wall Street are saying about Tesla’s third-quarter results and where they see the stock going from here. Morgan Stanley, $310 per share price target Morgan Stanley’s Adam Jonas contends that investors worried about Tesla’s growth trajectory can exhale slightly after the third-quarter earnings beat and Musk’s production forecast for 2025. Jonas reiterated his overweight rating on Tesla stock, and his price target implies 45% upside. “One of the strongest Tesla prints in a while could mark a ‘bottom’ in auto earnings expectations (and sentiment?),” Jonas said on Wednesday. “More specific comments about ‘slight’ FY24 delivery growth and next gen/lower cost new product intros from 1H25 help to address investor concerns around top line growth.” Wells Fargo, $125 per share price target Wells Fargo isn’t a buyer after the strong results, citing high valuations. Analyst Colin Langan reiterated his underweight rating on Tesla following the quarterly report. “Trading at 95x 2025 Street EPS, robotaxi is clearly driving TSLA mkt premium. After attending We, Robot Day, we still believe these promises won’t be delivered on until post-2030,” Langan said. “The lack of specifics makes us cautious & will require a long & unknown regulatory approval process. Furthermore, reports indicate the Robots were tele-opped.” Goldman Sachs, $250 per share price target Goldman Sachs analyst Mark Delaney said that a key measure of Tesla’s success moving forward will be if whether the company can deliver on its autonomous driving promises. His neutral rating and $250 per share price target implies roughly 17% upside ahead. “We believe the report is an incremental positive, with stronger margins than we had expected,” Delaney said. “We believe key debates will include whether Tesla can meet its FSD [full self driving] performance and vehicle delivery growth targets for 2025, and also the sustainability of margins.” Barclays, $220 per share price target Barclays had positive takeaways from the report but reaffirmed that questions remain around Tesla’s artificial intelligence and full self driving initiatives. Analyst Dan Levy reiterated a neutral rating on Tesla with a $220 price target, or about 3% upside ahead. “Tesla posted a solid 3Q beat, reflecting upside on margin. While we believe the 3Q print doesn’t change the underlying debates around AI/AV strategy or the question of 2025 volume / potential for ‘Model 2.5,’ nevertheless it should be deemed a positive as it reflects positive fundamentals for now, with estimates rightsized and likely past the worst on margins,” Levy said. Bank of America, raises price target to $265 from $255 Analyst John Murphy reiterated the stock as a buy, raising his price target to $265 from $255. That implies upside of 24%. He noted that Tesla is well positioned for a “second growth wave.” “Management provided plenty of positive commentary during the earnings call,” Murphy wrote. “The bottom-line was that Tesla is charging up for the next wave of growth. Tesla commented that it expects 20-30% unit volume growth in 2025 excluding any exogenous events, start of production of the Cybercab, launch a public ride hailing app (Texas and possibly California), deliveries of batteries for the energy storage business from the Shanghai factory, improved capabilities on FSD, and Semitruck start- of-production (scale in 2026).”
