Technology
Wednesday, April 24th, 2024 1:57 pm EDT
Key Points
- Tesla shares surged over 10% after Elon Musk announced plans to begin production of new affordable EV models by early 2025.
- Musk’s announcement followed disappointing first-quarter numbers, with a 9% year-over-year revenue drop, the steepest since 2012, and adjusted earnings per share falling short of expectations.
- Bank of America analysts upgraded Tesla stock to buy, citing Tesla’s positive business outlook with the launch of new vehicle models and driver assistance system, while UBS analysts remained skeptical, reiterating a neutral rating due to concerns about near-term viability and lack of clarity on the potential of the new vehicles.
Tesla shares surged over 10% on Wednesday following CEO Elon Musk’s announcement that the company plans to commence production of new affordable electric vehicle (EV) models by early 2025. Musk made these remarks during Tesla’s earnings call, which followed the revelation of disappointing first-quarter numbers, with revenue dropping by 9% year-over-year, marking its most significant annual decline since 2012. Initially, Tesla anticipated starting production of the new EV models in the latter half of 2025. Despite falling short of expectations, reporting adjusted earnings per share of 45 cents on $21.3 billion in revenue, analysts noted that Tesla’s first-quarter results and leadership’s commentary addressed key concerns and revitalized the growth narrative. Bank of America upgraded the stock from neutral to buy, maintaining a $220 price target, citing positive business outlook as Tesla prepares to launch new vehicle models and license its driver assistance system. Conversely, UBS analysts reiterated their neutral rating on Tesla stock, lowering their price target to $147 from $160, expressing skepticism toward the company’s statements. They highlighted Tesla’s increasing focus on autonomy, acknowledging progress but remaining cautious about near-term viability and expressing uncertainty regarding the potential of the new vehicle lineup.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/24/tesla-stock-up-after-elon-musk-says-new-affordable-ev-models-coming.html
