#TeslaEarnings #ElonMusk #ElectricVehicles
Tesla's Stock Soars on Impressive Q3 Earnings and Musk's 2025 Projections
Tesla's stock experienced its most significant one-day surge in over a decade, climbing 22% to close at $260.48 on Thursday. This dramatic increase followed the release of the company's third-quarter earnings report, which exceeded analyst expectations.
Earnings Highlights
Tesla reported revenue of $25.18 billion, slightly below the anticipated $25.37 billion but still an 8% increase from the previous year. The adjusted earnings per share reached 72 cents, surpassing the average analyst prediction of 58 cents. This earnings beat was largely driven by $739 million in revenue from environmental regulatory credits, a significant source of income for Tesla due to its exclusive production of electric vehicles.
Full Self-Driving (FSD) Revenue
The company also saw substantial revenue from its Full Self-Driving (FSD) system, generating $326 million in the quarter. During the earnings call, Tesla introduced new features for the FSD, including its availability for the Cybertruck and a new "Actually Smart Summon" feature.
Musk's 2025 Growth Projections
CEO Elon Musk made a bold prediction during the earnings call, forecasting vehicle growth between 20% and 30% for 2025. This growth is expected to be driven by the introduction of lower-cost vehicles and advancements in autonomous technology. However, analysts remain skeptical about these projections. For instance, Deutsche Bank analysts estimate a more conservative growth of 10-15%, contingent on Tesla launching a more affordable version of the Model Y priced under $30,000 after subsidies. Morgan Stanley analysts also predict a growth rate of around 14%, emphasizing the need for Tesla to enhance affordability through cheaper models, financing options, and improved features.
Analyst Reactions
Analysts at JPMorgan expressed optimism about Tesla's earnings performance, suggesting it would lead to a strong positive reaction in the stock. However, Bernstein analysts raised doubts about Tesla's ability to achieve fully autonomous robotaxis, noting that such technology might still be years away. They highlighted Musk's history of overly optimistic predictions regarding FSD and pointed out that Tesla is lagging behind its competitors in the robotaxi sector.
Market Impact
Tesla's stock rally not only reversed the company's losses for the year but also brought the stock up by 3% year-to-date, although it still trails the Nasdaq's 22% gain. This significant surge underscores the market's reaction to Tesla's impressive earnings and Musk's ambitious growth projections for 2025.
Original Article: https://www.cnbc.com/2024/10/24/tesla-shares-surge-as-analysts-react-to-q3-earnings-musk-predictions.html
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