Tesla stock climbs as analysts raise targets following strong Q3 results

Austin: Tesla's stock soared on Friday, closing at 269.23 dollars, marking its highest point in over a year and erasing losses from earlier in 2024. With two consecutive days of gains, the stock is now up 8.4 percent year-to-date, though it still trails the Nasdaq's 23 percent increase. The recent surge was driven by Tesla’s robust third-quarter results, which prompted analysts to boost their outlook. Piper Sandler, already recommending Tesla as a buy, raised its 12-month price target for the stock from 310 dollars to 315 dollars, citing improved deliveries and stronger profit margins.

Tesla shares spiked 22 percent on Thursday, marking the second-largest single-day jump since its 2010 IPO. Despite narrowly missing analysts' revenue expectations at 25.18 billion dollars, Tesla reported a 72-cent adjusted earnings per share, surpassing the forecasted 58 cents. Revenue from environmental credits contributed 739 million dollars, though JPMorgan Chase analysts pointed out these credits may not be a reliable earnings source. Another boost came from the company’s Full Self-Driving (FSD) software, which brought in 326 million dollars.

Elon Musk: Vehicle production growth 20%- 30% next year:
CEO Elon Musk announced his outlook for vehicle production growth of 20 percent to 30 percent next year, anticipating advances in autonomous technology and lower-cost models. However, analysts have voiced skepticism about Tesla's progress on autonomy, with Bernstein analysts noting that Tesla trails other companies in the robotaxi race. Musk also revealed plans for a production start of the Cybercab—a robotaxi with no steering wheel or pedals—by 2026, with driverless ride-hailing in California and Texas possibly launching next year using existing vehicles that still require human oversight.
The recent gains have added about 30 billion dollars to Musk’s net worth, now totaling roughly 274 billion dollars, putting him well ahead of Oracle’s Larry Ellison, the world’s second-richest person.

Despite the rally, Tesla’s stock remains 34 percent below its peak in 2021. The company’s position faces challenges, with increasing EV competition, especially from China’s BYD, Geely, and newer firms like Li Auto and Nio, as well as legacy automakers in the U.S. who are strengthening their EV offerings.