Yahoo Finanza Tesla Gains on Record Profits; Growth Outlook Remains Intact
Tesla shares rose over 2% on Wednesday after the electric vehicle and clean energy company reported better-than-expected earnings in the fourth quarter and predicted that vehicle deliveries would grow over 50% in 2022 from the previous year.
The high-performance electric vehicle manufacturer reported quarterly adjusted earnings of $2.54 per share, beating the Wall Street estimates of $2.36 per share.
The electric vehicle producer said its revenue surged 64.9% to $17.72 billion from a year ago. That too topped the market expectations of $16.57 billion. As of last year, the Austin, Texas-based company had a net income of $5.5 billion, up from the previous record of $3.47 billion in 2020.
“4Q21 FCF and auto GM ex credits impressed, but Elon’s “rant” on FSD brings flashbacks to’19 when 1mn robotaxis were promised by YE20. Tesla (TSLA) shares tend to work the best when something new is coming; however, all new vehicles (Cybertruck/Semi) are now ’23 SOPs and there is no Model 2 (~$25k car) under development as Elon would rather focus on the disruption that Optimus, the humanoid robot, brings,” noted Jeffrey Osborne, equity analyst at Cowen.
Tesla stock closed 2.21% higher at $938.72 on Wednesday. The stock slumped over 11% so far this year after rising just nearly 50% in 2021.
Analyst Comments
“Q4 only met a fast-rising consensus but FCF beat handsomely on WC inflow. Operating metrics remain exceptional and a threat to legacy OEMs, but without an incremental “scare factor” or specific news from Elon Musk’s presence on the call,” noted Philippe Houchois, equity analyst at Jefferies.
“Bears will question the lack of new products in 2022 and bullish comments on FSD. We see sufficient growth in 3/Y this year and battery/manufacturing improvements to support estimates and Tesla reaching 2% global share.”
Tesla Stock Price Forecast
Thirty analysts who offered stock ratings for Tesla in the last three months forecast the average price in 12 months of $1,076.62 with a high forecast of $1,580.00 and a low forecast of $295.00.
The average price target represents a 14.85% change from the last price of $937.41. Of those 30 analysts, 15 rated “Buy”, eight rated “Hold” while seven rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $1300 with a high of $1600 under a bull scenario and $500 under the worst-case scenario. The investment bank gave an “Overweight” rating on the electric vehicle producer’s stock.
“No specific volume or profit target communicated in FY22 which is understandable given the factors outside of the company’s control and/or ability to predict – specifically including supply chain bottlenecks, dual-factory SOPs and first-time implementation of new technologies. We believe the combination of the quality of the 4Q result and the outlook should leave consensus expectations largely unchanged. Investors who are in the 2mm unit camp for FY22 should bring numbers down. But we believe those in the 1.3 to 1.5mm range for FY volume have little incremental cause for concern at this stage,” noted Adam Jonas, equity analyst at Morgan Stanley.
“Nothing truly ‘narrative changing’ for Tesla bulls here. The long-term story is intact. We believe Tesla is on a path to be a 10-factory company producing as much as 1mm units/factory by FY30 with the recurring installed base/SaaS revenue coming into season with each successive quarter. Tesla’s stock has held up surprisingly well in the midst of the broader market/tech sell-off YTD.”
Several other analysts have also updated their stock outlook. Cowen and company raised the target price to $660 from $625. JPMorgan lifted the target price to $325 from $295. Wells Fargo upped the target price to $910 from $860.
Technical analysis suggests it is good to buy as 150-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.
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This article was originally posted on FX Empire
