Tesla today
(As of 09:04 am ET)
- 52 week range
- $138.80
▼
$404.80
- P/E ratio
- 107.14
- Target price
- $254.48
Tesla NASDAQ:TSLA is approaching the key $400 mark, capping a year of sharp ups and downs. Previously in 2024, Tesla was among the worst-performing stocks in the S&P 500, falling nearly 40% at its lowest point. However, the electric vehicle giant’s stock has seen a remarkable turnaround and now ranks as the 45th-best performer in the index for the year. Tesla shares are up 57% year to date, fueled by a 72% surge this quarter and a staggering 180% surge from its 52-week low. The comeback underscores Tesla’s ability to overcome challenges and restore investor confidence.
Early difficulties paved the way for a comeback
Tesla faced some serious headwinds at the start of the year. CEO Elon Musk announced a global workforce reduction of 10% to improve efficiency and control costs. The move, coupled with Tesla’s first annual delivery cut since 2020, underscored the operational pressure on the company. First-quarter shipments were down 8.5% year-over-year, and production fell 12.5% sequentially. The company has also been dealing with controversy surrounding Musk’s $56 billion pay package, which has faced scrutiny from shareholders and regulatory concerns.
Despite these setbacks, the tech giant found support at key technical levels. After retracing the 200-day SMA and the $200 support level, the stage was set for a reversal. Expectations were rising as the market awaited Tesla’s third-quarter earnings report, which ultimately catalyzed a resurgence in the stock.
Third quarter earnings inspire optimism and momentum
Tesla’s third-quarter 2024 earnings report showed mixed results but highlighted resilience and efficiency. Revenue fell slightly below expectations to $25.18 billion, up 8% year-over-year. However, earnings per share (EPS) of $0.72 beat analysts’ estimates, indicating operating strength. Key highlights include record low vehicle costs of $35,100 and strong operating margin of 10.8%, reflecting the company’s ongoing efforts to control costs.
Tesla, Inc. price chart (TSLA) on Tuesday, December 10, 2024
The operational achievements further strengthened investor confidence. Tesla delivered 462,890 vehicles in the third quarter, up 6.4% year over year, while ramping up production of the highly anticipated Cybertruck. The company also celebrated the production of its seven millionth vehicle and expanded its Supercharger network by 20%. Notably, Tesla’s energy storage business grew 75% year-over-year, adding another layer to its growth. Tesla also reaffirmed its vision of a sub-$30,000 electric car, a move aimed at capturing a wider segment of the market and challenging rivals such as BYD and Volkswagen.
Analyst increases optimism as Tesla approaches $400
Tesla Stock Analysis MarketRank™
- Overall MarketRank™
- 92nd percentile
- Analyst rating
- Hold
- Pros/cons
- 34.7% Disadvantage
- Short interest level
- Healthy
- Dividend Power
- N/A
- Environmental assessment
- -0.51
- Mood News
- 0.50
- Insider trading
- Sale of shares
- Project Profit Growth
- 44.22%
See full analysis
As Tesla approaches its all-time high near $415, analysts are becoming increasingly bullish. Bank of America recently raised its price target to $400, citing Tesla’s advances in robotics and artificial intelligence as key drivers of long-term growth. Stifel Nicolaus also raised its target, setting its maximum estimate at $411 on December 2. These updates follow the announcement of the Tesla Model Q, an affordable electric vehicle aimed at dominating the Chinese market.
The company’s consensus price target has risen nearly 20% over the past three months, from $209 to $248. While this still suggests a potential downside, the movement in the revised price targets suggests analysts may continue to adjust their forecasts as Tesla makes steady progress.
Looking to the future
With Tesla shares rising and analyst sentiment improving, the company is poised to end 2024 on a strong note. Taking a company’s stock from one of the worst performers in the S&P 500 to a leading stock is a testament to its resilience and ability to innovate. As Tesla continues to expand its product line, streamline operations, and invest in innovative technologies, optimism about its future growth remains well-founded. Whether Tesla can break through the $400 level and get closer to its all-time high remains a key question for investors in the coming weeks.
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