Elon Musk attended the “Exploring New Areas of Innovation: A Dialogue between Mark Reed and Elon Musk” session on the third day of the 2024 Cannes International Creativity Festival held in Cannes, France on June 19, 2024.
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Tesla Shares of the company surged about 19% on Thursday morning, putting the stock on track for its best day in more than three years following better-than-expected results. earnings report.
The company reported revenue of $25.18 billion late Wednesday, slightly below analysts’ expectations of $25.37 billion but up 8% from a year earlier. Tesla reported adjusted earnings of 72 cents per share, above analysts’ average estimate of 58 cents.
“Given how accustomed investors have become to the company’s earnings disparity, we expect Thursday’s surprising earnings growth to drive strong positivity for Tesla shares,” J.P. Morgan analysts wrote in a note. reaction.
Tesla’s third-quarter profit margin benefited from $739 million in auto regulatory credit revenue, which JPMorgan analysts pointed out was a “potentially unsustainable driver” of future cash flow performance.
The car manufacturer is need to obtain certain A certain amount of regulatory credit is provided each year, and if targets are not met, credits can be purchased from other companies. Tesla has excess points because it only makes electric vehicles.
Tesla CEO Musk During an earnings call on Wednesday, he said his “best guess” is that “vehicle growth” will reach 20% to 30% next year, citing “lowering vehicle costs” and “the emergence of autonomous driving technology.” Analysts polled by FactSet expect deliveries to grow about 15% in 2025.
Morgan Stanley analysts who recommend buying the stock called Musk’s prediction of vehicle delivery growth in 2025 “possible.” Their estimate is 14%.
“This clearly depends on the company’s ability to improve affordability through the launch of cheaper models (next generation), financing offers and improved features,” Morgan Stanley analysts wrote in a note on Thursday.
With Tesla’s gains on Thursday, the stock erased this year’s losses and is now up nearly 2%, but still trails the Nasdaq’s 22% gain.
—CNBC’s Lora Kolodny contributed to this report.
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