Tesla, Inc. (TSLA), headquartered in Austin, Texas, is a company specializing in electric vehicles (EVs), energy storage, and clean energy solutions. Valued at $1.3 trillion by market cap, the company designs, manufactures, and sells a range of innovative products including luxury EVs like the Model S, Model X, and Model Y, as well as clean energy solutions like solar panels, solar roofs, and energy storage systems. The EV giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Jan. 22.
Ahead of the event, analysts expect TSLA to report a profit of $0.65 per share on a diluted basis, up 14% from $0.57 per share in the year-ago quarter. The company beat or matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect TSLA to report EPS of $1.99, down 23.5% from $2.60 in fiscal 2023. However, its EPS is expected to rise 43.2% year over year to $2.85 in fiscal 2025.
TSLA stock has outperformed the S&P 500’s ($SPX) 23.3% gains over the past 52 weeks, with shares up 62.5% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)25.5% gains over the same time frame.
Tesla's success can be attributed to its innovations in autopilot features and battery technology, driving the growth of the electric vehicle industry. Its strong demand, energy generation & storage segment, supercharger network, and AI advancements have bolstered its position. With a robust balance sheet and focus on autonomous vehicles, Tesla is leading the way in clean energy and technology. Analysts are bullish on its long-term initiatives, including Full Self-Driving and robotaxi services. The appointment of Elon Musk as co-leader of the new Department of Government Efficiency under the Trump administration has also fueled optimism for Tesla's future.
On Oct. 23, TSLA reported its Q3 results and its shares closed up more than 21% in the following trading session. Its adjusted EPS of $0.72 surpassed Wall Street expectations of $0.60. The company’s revenue was $25.2 billion, missing Wall Street forecasts of $25.5 billion.
Analysts’ consensus opinion on TSLA stock is cautious, with a “Hold” rating overall. Out of 37 analysts covering the stock, 12 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” 14 give a “Hold,” and nine recommend a “Strong Sell”. While TSLA currently trades above its mean price target of $292.03, the Street-high price target of $515 suggests an upside potential of 27.5%.
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