Tesla Stock Rallies Despite Earnings Miss
Tesla stock is moving higher despite coming up short of expectations for its fourth quarter. Here's what you need to know.


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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Strong April Jobs Report Lowers Rate-Cut Hopes: What the Experts Are Saying
The June jobs report shows that hiring remains strong and gives the Fed a little extra breathing room when it comes to interest rates.
-
Don't Fall For These Five Costly Medicare Myths
Signing up for Medicare can be complicated, and mistakes can be costly. Let's demystify these five Medicare myths to avoid expensive penalties.
-
June Jobs Report Dashes July Rate Cut Hopes: What the Experts Are Saying
The June jobs report shows that hiring remains strong and gives the Fed a little extra breathing room when it comes to interest rates.
-
Investing Professionals Agree: Discipline Beats Drama Right Now
Big portfolio adjustments can do more harm than good. Financial experts suggest making thoughtful, strategic moves that fit your long-term goals.
-
'Doing Something' Because of Volatility Can Hurt You: Portfolio Manager Recommends Doing This Instead
Yes, it's hard, but if you tune out the siren song of high-flying sectors, resist acting on impulse and focus on your goals, you and your portfolio could be much better off.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs After Vietnam Trade Deal
Ahead of a key July 9 tariff deadline, President Trump said the U.S. has reached a trade deal with Vietnam.
-
Social Security's First Beneficiary Lived to Be 100: Will You?
Ida May Fuller, Social Security's first beneficiary, retired in 1939 and died in 1975. Today, we should all be planning for a retirement that's as long as Ida's.
-
An Investment Strategist Demystifies Direct Indexing: Is It for You?
You've heard of mutual funds and ETFs, but direct indexing may be a new concept ... one that could offer greater flexibility and possible tax savings.
-
Q2 2025 Post-Mortem: Rebound, Risks and Generational Shifts
As the third quarter gets underway, here are some takeaways from the market's second-quarter performance to consider as you make investment decisions.
-
Stock Market Today: Another Quarter, More Mixed Price Action
"Up and to the right" remains the general trend despite persistent uncertainty around critical policy issues.