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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Following its biggest one-day gain since 2013, Tesla’s The stock posted its highest closing price in more than a year on Friday as investors and analysts continued to praise the electric vehicle company’s third-quarter results.
Tesla shares rose 2.8% to $267.79 on Friday morning, putting the stock on track for its highest closing price since September 2023. rose about 8%, still lagging the Nasdaq’s 24% gain.
Analysts at Piper Sandler were the latest to raise their price targets following Wednesday’s earnings report. The company already has a buy rating on the stock and said it would raise its 12-month stock price forecast to $315 from $310 “to reflect higher deliveries and improved margins.”
Tesla shares soared 22% on Thursday, marking the company’s second-best performance since its 2010 IPO. Year-on-year growth of 8%. Tesla reported adjusted earnings of 72 cents per share, above analysts’ average estimate of 58 cents.
Tesla’s profit margins rose by $739 million on environmental regulatory credit revenue, which JPMorgan analysts noted in a report as a “potentially unsustainable driver” of earnings and cash flow. Results were also boosted by $326 million in revenue from the company’s fully autonomous driving monitoring system, FSD.
Chief Executive Elon Musk said on an earnings call that his “best guess” is that auto sales will grow 20% to 30% next year, citing lower vehicle costs and the “emergence of self-driving technology.” Analysts polled by FactSet expect deliveries to grow about 15% in 2025.
Musk also said on the call that Tesla plans to start production of the recently launched Cybercab, a robot taxi with butterfly doors and no steering wheel or pedals, by the end of 2026. Tesla’s next step is to launch driverless ride-hailing services in California and Texas. Existing cars are currently unsafe to use without a human driver ready to steer or brake.
According to data, after two days of gains, Musk’s paper wealth has now increased by about $30 billion, bringing his total net worth to about $274 billion. Forbes. That puts him $60 billion ahead of the world’s second-richest man, Oracle Founder Larry Ellison is a former Tesla board member and a good friend of Musk.
Still, Tesla’s stock price is about 35% below its all-time high set in 2021.
Competitive risks remain.
In China, companies such as BYD and Geely, as well as next-generation carmakers such as Li Auto and NIO, have been boosting sales. In the U.S., legacy automakers Ford and General Motors are starting to sell more electric vehicles despite backtracking on previous electrification commitments.
When it comes to autonomous driving, Musk has consistently missed deadlines to bring products to market. Bernstein analysts wrote in a note after the earnings release that Musk has “long been overly optimistic about FSD,” adding that research shows “Tesla continues to lag far behind competitors in robotaxis.” ”.
watch: Tesla’s price war is over
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