Tesla shares rose to $267.79 on Friday, marking their highest close since September 2023 following a strong third-quarter earnings report. After surging 22% on Thursday, Tesla’s stock has now increased 8% for the year, narrowing the gap with the Nasdaq’s 24% gain in 2024. Piper Sandler raised its 12-month price target to $315, citing stronger delivery rates and higher margins.
Tesla’s Q3 revenue reached $25.18 billion, slightly below estimates but up 8% year-over-year, with adjusted earnings per share of 72 cents—outperforming analyst forecasts. Profit margins saw a boost from $739 million in regulatory credits and $326 million from its Full Self-Driving (FSD) system, though JPMorgan analysts view regulatory credits as an uncertain source of cash flow.
On the earnings call, CEO Elon Musk forecasted vehicle growth between 20%-30% for 2025, largely driven by advancements in autonomy and more affordable vehicle models. Musk anticipates production of Tesla’s Cybercab robotaxi, with its unique butterfly doors and no manual controls, by 2026. Pilot autonomous ride-hailing services are set for 2025 in California and Texas.
Musk’s net worth rose to approximately $274 billion after the rally, positioning him $60 billion ahead of Oracle founder Larry Ellison. However, Tesla’s shares still lag about 35% behind their all-time high in 2021.
Competitive Landscape
Despite the stock’s recent surge, Tesla faces intensifying competition from Chinese manufacturers like BYD and Nio, and U.S. legacy automakers Ford and GM, who are expanding their EV offerings despite recent reductions in electrification commitments. Additionally, while Musk is optimistic about Tesla’s autonomy progress, analysts from Bernstein caution that Tesla continues to trail competitors in robotaxi technology.