Tesla (TSLA) stock is soaring in Thursday's session, sailing to the top of the S&P 500 after the electric vehicle (EV) maker topped profit expectations for its third quarter. Tesla CEO Elon Musk's upbeat outlook for vehicle delivery growth in 2025 is also boosting sentiment on the Magnificent 7 stock.
In the three months ended September 30, Tesla's revenue increased 7.8% year over year to $25.2 billion, driven in part by a 52.4% surge in revenue in its energy generation and storage segment. Its earnings per share (EPS) were up 9.1% from the year-ago period to 72 cents.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $25.4 billion and earnings of 58 cents per share, according to CNBC.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
"We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year on year, resulting in record third-quarter volumes," Tesla said. "We also recognized our second-highest quarter of regulatory credit revenues as other OEMs [original equipment manufacturers] are still behind on meeting emissions requirements."
On Tesla's conference call, CEO Elon Musk provided a "rough estimate" for vehicle delivery growth next year. "I think with our lower-cost vehicles with the advent of autonomy, something like a 20% to 30% growth next year is my best guess," he said.
Musk's outlook is well ahead of analysts' expectations for 15% growth in vehicle deliveries next year.
Is Tesla stock a buy, sell or hold?
Heading into Thursday's session, Tesla was down 14% for the year to date. And Wall Street's expectations for the consumer discretionary stock weren't too high.
According to S&P Global Market Intelligence, the average analyst target price for TSLA stock is $213.71, which is roughly in line with its October 23 close. Additionally, the consensus recommendation is a Hold.
However, there are some that say Tesla is a Buy, especially after its blowout report, including financial services firm Wedbush.
"Last night Tesla delivered an early Christmas present for investors as the bulls got a monster margin rebound and a surprisingly strong delivery outlook for 2025 which we would characterize as an Aaron Judge-like quarter and guidance," said Wedbush analyst Daniel Ives in a note this morning. "The highlight of the night was Tesla giving delivery growth for 2025 of 20%-30% vs whisper Street numbers in the 10%-12% heading into the print."
Related Content
-
The Savvy Way to Spend (and Enjoy) Your BonusUse your bonus to build wealth, boost savings and still enjoy a little well-earned fun.
-
Stores Open (and Closed) on Thanksgiving Day 2025From grocery stores to big-box retailers, here’s where you can shop and where you’ll find doors shut on Thanksgiving.
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
-
I'm a Financial Adviser: Here's How a Three-Part Retirement 'Crash Plan' Can Prepare You for Market TurbulenceHaving a plan ready to go when markets get wild — covering how you'll handle income, rebalancing and taxes — can be the ultimate retirement secret weapon.
-
Investors Buy the Nasdaq's Big Dip: Stock Market TodayStocks are up and down again to end an up-and-down week ahead of big earnings announcements and the eventual return of regular economic data flow.
-
Here's How to Plan This Year's Roth Conversion, From a Wealth ManagerWhile time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy.
-
Four Times You Need a Second Opinion on Your Financial PlanIs your financial plan fit for purpose — or is your adviser peddling an outdated strategy? When you see these red flags, it's time for a second opinion.Evan
-
'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five ScenariosInsurance companies care about 'fault' in more ways than you think — from payment mishaps to your neighbor's landscaping — so it's on you to manage the risks.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are five we like.
