Summary
- Tesla received a price target boost from Truist Securities analysts, but there were criticisms about lack of information on future vehicles and AI achievements
- Despite missing Wall Street targets in Q4 earnings, Tesla’s stock went up due to plans for 2025, including launching unsupervised Full Self-Driving as a service in Austin in June
- Tesla plans to launch affordable models in 2025 to drive growth in deliveries
- Truist Securities analyst raised Tesla’s price target to $373, but noted a lack of details during the earnings call
- Despite weak financial results, Tesla revealed details on AI milestones and upgrades, leading to a 2.11% increase in share price.
Article
Tesla’s earnings report from the fourth quarter of 2024 revealed a tempered financial showing, missing most Wall Street targets, but the stock still saw an increase in after-hours trading and on Thursday due to the company’s plans for 2025. CEO Elon Musk announced plans to launch unsupervised Full Self-Driving as a service in Austin in June 2025, marking Tesla’s first public offering of driverless FSD rides. The company also reiterated its plans to release affordable models this year, aiming to drive annual growth in deliveries in 2025 after remaining flat in 2024 compared to 2023.
Despite the positive announcements during the earnings call, Truist Securities analyst William Stein raised concerns about the lack of concrete information shared by Tesla. While Stein raised the company’s price target to $373 from $351, he criticized the focus on potential releases and “cheerleading” during the call, noting that Tesla’s weak financials in Q4 drove revenue, gross profit margin, operating profit margin, and earnings per share below consensus estimates. The lack of details regarding new vehicles in 2025 and milestones for AI achievements, particularly Full Self-Driving, left analysts questioning the substance behind the company’s plans.
Although Tesla reported weak financial metrics in the fourth quarter of 2024, CEO Elon Musk’s revelation of plans for Full Self-Driving as a service launch in Austin and updates on affordable models and vehicle features helped offset some of the negative sentiment surrounding the financial results. Despite the criticisms from analysts like Stein, Tesla highlighted AI milestones achieved, such as record-breaking miles per accident on Autopilot and major upgrades to its AI capabilities through the deployment of a training cluster at Gigafactory Texas. The company’s focus on safety and comfort improvements in its V13 version of FSD contributed to a positive outlook for future growth.
Tesla’s shares saw a 2.11 percent increase on Thursday following the earnings report and announcements made during the call. The company’s strong focus on AI advancements and plans for new vehicle releases in 2025 contributed to investor optimism despite the weak financial showing in Q4 2024. With the launch of unsupervised Full Self-Driving as a service in Austin set for June, Tesla aims to demonstrate its progress in autonomous driving technology and accelerate growth through the introduction of affordable models and innovative features like Steer by Wire, Adaptive Air Suspension, and Rear Wheel Steering.
While concerns were raised about the lack of details provided during the earnings call, Tesla’s focus on AI achievements and plans for future vehicles signal potential for growth in the coming years. The company’s commitment to pushing the boundaries of autonomous driving technology and enhancing safety and comfort features in its vehicles reflects its mission to disrupt the automotive industry. As Tesla continues to innovate and expand its product offerings, investors will be closely watching for updates on the company’s progress and success in achieving its ambitious goals.
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