CFRA analyst Garrett Nelson raised the price target on Tesla to $1,300.00 from $1,250.00 while maintaining a Buy rating. The analyst said ’24 P/E of 90x, justified by TSA’s long-term earnings potential. They Earnings Per Share estimates by $1.35 to $10.40 this year, by $1.20 to $12.45 for 2023, and by $1.35 to $14.45 2024.
A couple days ago, the Analyst joined Yahoo Finance to talk about Tesla’s Earnings and said:
“All signs here point to another very strong quarter for Tesla. We know what their production and sales were for the quarter in terms of vehicles sold. That came out a few weeks ago, and it was a record high quarter for Tesla. So they’ve also gotten really good at beating consensus. So Tesla has now beat eight of the last nine quarters.”
“But we think with the record quarterly production in the sales that they posted for Q4, that that really bodes well in terms of their ability to beat just given the high fixed-cost nature of auto manufacturing. When you have a quarter when you have such strong volumes, that tends to really drive down unit costs and gives them a lot of bottom-line leverage. So we’re expecting another very strong quarter. And really, investors will be focused on what guidance they provide in the release.”
Tesla announced today its Earnings beating estimates with new records.
• Earnings: $2.54 per share, adjusted, vs. $2.33 per share as expected by analysts.
• Revenue: $17.71 billion, vs. $17.1 billion as expected by analysts.
• Automotive Gross Margin: 30.6%
“We aim to increase our production as quickly as we can, not only through ramping
production at new factories in Austin and Berlin, but also by maximizing output from our established factories in Fremont and Shanghai.” – Tesla said.
Revenue rose 65% year over year in the quarter, while net income, at $2.32 billion, was up some 760%, according to Tesla’s statement.
The company says they have successfully increased the number of FSD Beta vehicles from a couple of thousand in Q3 to nearly 60,000 vehicles in the US today.
“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” the company said.
Earlier this month, Tesla announced that deliveried 308,600 vehicles in Q4, setting a new record during the last Quarter. In 2021, Tesla delivered a total of 936,172 vehicles in 2021, crushing all the expectations.
During Q4 2020, the company delivered about 181,000 vehicles and Wall Street was looking for about 176,000 vehicles to be delivered at the time of the release. The result was about a 3% beat versus expectations. This quarter, Wall Street expectations were on 275,000 units, which means Tesla beat by more than 12%.