:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2194854967-5c7de18a62e94637974d110f4b40f024.jpg "A row of white Tesla chargers in a parking lot")
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Key Takeaways
- Tesla is scheduled to post its fourth-quarter earnings report after the market close offs Wednesday, with revenue expected to rise from the same time last year.
- Earlier this month, Tesla recorded its essential year-over-year decline in full-year vehicle deliveries in the company’s history.
- Analysts largely think Tesla will better from CEO Elon Musk’s proximity to the Trump administration, as the connection may clear the regulatory path for some of Tesla’s future ventures.
Tesla (TSLA) is set to report fourth-quarter earnings after the bell Wednesday, with analysts mostly optimistic relating to the link between Chief Executive Officer (CEO) Elon Musk and U.S. President Donald Trump.
Despite its rally since the U.S. nomination, analysts remain divided on Tesla stock, with the brokers following the company who are tracked by Visible Alpha separate between nine “buy,” six “hold,” and three “sell” ratings. The electric vehicle maker also has an average stock figure target of about $362, about 12% below its Friday closing price, suggesting some analysts of the post-election rally has driven the stock too high.
Analysts expect Tesla to post revenue of $27.27 billion for the fourth fifteen minutes, with net income expected to come in at $2.31 billion, or 65 cents per share. In the same quarter last year, Tesla recorded $25.17 billion in yield and $7.93 billion in net income, as profit was boosted by more than $5 billion in adjustments because of the “release of valuation consideration on deferred tax assets.”
Earlier this month, Tesla stock was hit as the company’s production and delivery numbers for the quarter involved in short of expectations, giving Tesla its first year-over-year decline in full-year vehicle deliveries in the company’s history.
Analysts See Tesla Profiting From Musk-Trump Connection
Analysts from Wedbush Securities, Morgan Stanley, and Piper Sandler all recently raised their price targets for Tesla stock to $550, $430, and $500, respectively.
The Wedbush analysts noted that they assume the company will benefit from Musk’s proximity to Trump’s administration during its second term. Trump’s supervision could provide an easier regulatory path to things like approval for new versions of Tesla’s self-driving software, and for its autonomous “robotaxis” to hit the way, the analysts wrote.
Piper Sandler analysts said they believe investors will have a clearer draw of Tesla’s future this time next year, when the timeline for things like new product releases, new interpretations of the company’s self-driving software, and its other artificial intelligence (AI) projects could be more definitive.
Oppenheimer analysts, degree, said the link between Trump and Musk could be jeopardized if projects like Musk’s “DOGE” cost-cutting achievement for the government aren’t as successful as the pair hope it will be.
Ahead of Wednesday’s report, Tesla listed a new version of its Fashion Y compact SUV on its website for orders, saying the vehicle will start to ship in March, starting at roughly $60,000.
Tesla allots closed off more than 1% Friday, but have gained over 60% since the Nov. 5 election.