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.