All Eyes on Tesla Stock Ahead of 3Q24 Earnings – Here's What Daniel Ives Expects – TipRanks.com
Tesla (NASDAQ: TSLA ) The robotaxi event was a major setback for investors but the EV tech giant will have a chance to turn sentiment positive again when it reports Q3 earnings after the close tomorrow.
According to Wedbush analyst Daniel Ives, Tesla needs to show some progress on the margin front to regain investor confidence. Ives thinks the road is looking for a “leveling off” for Auto GM (ex-Credit) and expects a trajectory that will show margins moving toward the ~20% threshold level for 2025.
“We need to start seeing this key metric head into the high teens in 3Q/4Q to provide road comfort, with much of the price reduction in the rear-view mirror showing that better margin days lie ahead for 2025,” the analyst went on to say.
Looking ahead, Ives expects strong growth to continue in Q4, with record months at the end of Q3, thanks to favorable leasing and financing options and pent-up demand in key regions of China. While EU subsidies and macro pressures mean Europe will continue to have a “slight overhang”, this should be balanced by stable US demand and improving interest in other regions. Nevertheless, China is set to be the standout this quarter.
Investors clearly left Robotaxis Day wanting more details on Tesla's overall autonomous and AI strategy, and Ives expects Elon Musk to provide more clarity on the timing and specifics of FSD and CyberCab plans during the conference call. There could also be an update on the timing of the potentially expected sub-$30,000 car, which Ives thinks could launch in mid-2025.
“Overall,” the analyst summarized, “we expect generally in-line 3Q headline numbers with the potential for some upside to margins going forward, which shows the downside of this key metric.”
Ives remains one of the Street's TSLA bulls, giving the shares an Outperform (i.e., Buy) rating with a $300 price target, indicating ~38% gains are in the cards for the next year. (To see Ives' track record, click here)
Ives isn't the only Tesla bullish — 10 other analysts also rate Tesla a buy. However, they contrast with 16 hold ratings and 8 sell, resulting in a consensus rating of hold. The average price target of $207.83 suggests that the stock could fall ~5% from current levels. (See Tesla stock forecast
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Disclaimer: The views expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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