Tesla (NASDAQ:TSLA)'s latest quarterly report sparked a more than 14% rise in the stock premarket Thursday.
Following the results, various analysts have provided their assessments, with many noting both positives and lingering concerns about margins and product timelines. Here's a breakdown of their views.
Canaccord expressed optimism about Tesla's growth trajectory, saying the company is likely entering an "accelerating revenue and earnings story with an upcoming product cycle," which could drive stock outperformance.
Bernstein, however, remains skeptical, reiterating an Underperform rating with a $120 price target. While Tesla posted strong Q3 results, including auto gross margins of 15.6% excluding credits, Bernstein doubts the company can achieve its ambitious self-driving and robotaxi goals, questioning the $500 billion valuation attached to these initiatives.
RBC Capital raised its price target to $249 from $236, maintaining an Outperform rating on the stock. The bank praised Tesla's " eye-watering" auto gross profit margin despite price cuts. The firm believes future investor attention will focus on Tesla's energy storage and autonomy businesses.
TD Cowen highlighted Tesla's "record low COGS per vehicle," which boosted non-GAAP auto gross margins to 17.1%. However, the firm cautioned that Q4 margins could decline as discounts ramp up. It maintained a Hold rating on the stock.
Goldman Sachs (NYSE:GS) acknowledged the positive margin surprise but noted that key investor debates will revolve around Neutral-rated Tesla's ability to meet 2025 delivery targets and FSD goals.
Truist raised concerns about a lack of clarity on future models and FSD progress, stating, "We were left expecting more." The firm maintained a Hold rating on the stock, with a price target of $238.
Barclays (LON:BARC) said the Q3 beat provides short-term momentum for Equal-Weight rated Tesla but noted that longer-term questions around AI and the next product cycle remain.
Jefferies maintained a Hold rating on Tesla, noting that management's tone was upbeat, and they were no longer blaming interest rates and were back to discussing the energy mission.
Wedbush described Tesla's margin beat as an "Aaron Judge-like performance" and emphasized Tesla's potential to expand profitability as price cuts are now in the rearview. "Overall this was a huge step in the right direction for the Tesla story, in our view," they wrote. "We maintain our Outperform rating and $300 price target."
Finally, Piper Sandler hailed the quarter as "unexpectedly good," maintaining an Overweight rating with a $300 price target. The firm highlighted Tesla's upbeat 2025 outlook, including 20-30% delivery growth, as a key positive.