Tesla, the electric vehicle giant, reported a Q4 earnings revenue and profit beat, with revenue reaching $24.32 billion and adjusted EPS of $1.19. This marks another record high for the company, with revenue increasing by over $2 billion from Q3 and nearly $7 billion from the previous year. The company also reported a strong profitability, with adjusted net income of $4.1 billion, nearly $400 million more than Q3 and over $1.3 billion more than the previous year. Tesla CEO, Elon Musk, addressed concerns from investors about demand, stating that recent price cuts had boosted demand considerably and that January had seen the strongest orders to date.
In addition to the strong financial performance, Tesla announced that its Cybertruck is on track for production later this year. The company also revealed that its next-gen platform is under development, with more details to be shared at its investor day on March 1st. Musk clarified that while Cybertruck production would begin this summer, volume production would not begin until 2024.
Gross margin came in at 23.8%, with automotive gross margin hitting 25.9%. Despite instituting price cuts in the U.S, China, and some European markets, these cuts did not happen until Q1 of this year and therefore did not have an impact on Q4 results. However, Tesla stated that it expects to maintain 20% automotive gross margins despite recent price cuts, which would be considerably less than what was forecasted.
It is difficult to say whether Tesla’s strong earnings have put a “bottom” in the stock, but the possibility is there.. While the company’s Q4 earnings beat expectations and showed strong revenue and profit growth, stock prices can be influenced by a variety of factors, including broader market conditions, investor sentiment, and future growth prospects. So the real question is, has the negative sentiment been evaporated by the earnings report and have all or most fears been alleviated? Only time will tell, but there is a good chance yes, we likely won’t break the $100 mark now, unless the market goes substantially lower.
Tesla Stock Forecast & Analysis
Based on the forecasts from 36 analysts, the company’s stock is expected to rise in the next 12 months with an average target price of USD 252.51. This is a significant increase from the last closing price of USD 143.89. The average analyst rating for the company is Strong Buy, indicating that most analysts believe the stock has a high potential for growth.
Stock Target Advisor’s own stock analysis of Tesla Inc is slightly bullish, which is based on 10 positive signals and 6 negative signals. These signals include factors such as financial performance, industry trends, and market sentiment. The positive signals suggest that the company has strong financials, a growing market, and a positive outlook among investors. On the other hand, the negative signals indicate that there may be some risk factors to consider before investing in the company.
Looking at the stock’s performance over the past week, month, and year, it has seen a positive change of +9.43%, +16.84%, and -53.58% respectively. These changes suggest that the stock has been gaining momentum in the short-term but has faced significant decline over the past year.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
