Tesla (TSLA) stock is higher Thursday despite the electric vehicle maker coming up short of top- and bottom-line expectations for its fourth quarter.
Elon Musk continues to play a prominent role in the administration of President Donald Trump, whom the Tesla CEO ardently supported in the 2024 campaign for the White House.
Of greater significance for analysts when it comes to TSLA stock are progress on self-driving cars, more and cheaper EV models and valuation.
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.
In the three months ending December 31, Tesla's revenue increased 2.1% year over year to $25.7 billion, boosted by a 112.9% increase in its Energy Generation and Storage revenues to $3.1 billion. Earnings per share (EPS) rose 2.8% from the year-ago period to 73 cents.
"Q4 was a record quarter for both vehicle deliveries and energy storage deployments," Tesla said. "We expect Model Y to once again be the best-selling vehicle, of any kind, globally for the full year 2024, and we have made it even better, with the New Model Y now launched in all markets."
The results came up short of analysts' expectations. Wall Street was anticipating revenue of $27.3 billion and earnings of 76 cents per share, according to CNBC.
Tesla didn't provide any specific guidance for its fiscal 2025 first quarter or full year, but management did say it expects its vehicle business to "return to growth in 2025."
The EV maker said it remains on track to start producing lower-cost vehicles in the first half of 2025. And the Cybercab is scheduled for volume production beginning in 2026.
Is Tesla stock a buy, sell or hold?
TSLA stock is up 104% over the trailing 12 months, including a 180% rally off its 52-week low of $138.80 on April 22, 2024, and a 55% post-election bounce.
Given its recent surge, Wall Street is on the sidelines when it comes to the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for TSLA stock is $324.10, which is a discount of about 20% to current levels. And the consensus recommendation is Hold.
Financial services firm Needham is one of those outfits with a Hold rating on TSLA stock.
"At a high level we see an auto original equipment manufacturers struggling to match supply and demand, with TSLA playing catch-up in autonomous driving until they can fully unlock their fleet of vehicles currently on the road, but now offering a modestly higher level of detail on TSLA Bot production cadence and total cost of goods sold to keep bulls fully engaged," writes Needham analyst Chris Pierce in a note assessing the company's results.
“We reiterate our Hold rating, viewing TSLA's call options on Full Self-Driving and Robotics as largely priced in at these levels."
Related Content
-
Don’t Miss Apple and Walmart Back-to-School Tax-Free Holiday Savings this SummerSales Tax Select states host sales tax holidays during the summer. Here’s what you can purchase.
-
The Rule of Retirement InversionThe rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case StudySusan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your PortfolioAlternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and CommentaryThe July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
A Contrarian Approach Pays Off for This Small-Cap FundSmall-cap stocks have been hit hard by tariff worries, but this T. Rowe Price fund has outperformed thanks to its manager's against-the-tide approach.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative InvestmentsAlternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.
