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Investing.com - Cantor Fitzgerald raised its price target on Tesla (NASDAQ:TSLA) to $510 from $355 while maintaining an Overweight rating following the electric vehicle maker’s third-quarter results. The company, currently valued at $1.39 trillion with a P/E ratio of 260, has shown strong momentum with a 105% return over the past year according to InvestingPro data.
The investment firm cited Tesla’s better-than-expected performance on revenue, gross margin, and free cash flow in the third quarter, though adjusted earnings per share came in slightly below consensus estimates. The strong results were primarily driven by record quarterly vehicle deliveries and growth in the energy generation and storage segment. With annual revenue of $92.72 billion and a gross margin of 17.48%, Tesla continues to demonstrate its market leadership. InvestingPro analysis reveals 20 additional key insights about Tesla’s financial health and growth prospects.
Cantor Fitzgerald expressed optimism about Tesla’s recent introduction of lower-priced vehicles, viewing the strategy as an opportunity to boost customer demand and potentially regain electric vehicle market share that has been lost to competitors.
The firm highlighted Tesla’s record-breaking energy storage deployment during the quarter, which was driven by Powerwall deliveries and the ramp-up of the Shanghai Megafactory. This segment generated approximately $3.4 billion in third-quarter revenue, with Cantor projecting energy revenues to reach $12.9 billion in fiscal year 2025 and $18 billion in fiscal year 2026.
Despite the significant price target increase, Cantor Fitzgerald cautioned that Tesla shares are trading near all-time highs with a forward price-to-earnings ratio exceeding 200, suggesting new investors might want to wait for a potential pullback to find a better entry point.
In other recent news, Tesla reported revenue of $28.1 billion for the third quarter, surpassing Street expectations by 6%. However, the company’s non-GAAP earnings per share of $0.50 fell short of consensus estimates by $0.06. The automotive non-GAAP gross margin was reported at 15.4%, slightly below the expected 16%. Following these earnings results, Goldman Sachs maintained its Neutral rating on Tesla with a price target of $400. Stifel reiterated its Buy rating, keeping a $483 price target, while noting that revenue, gross profit, and EBITDA exceeded projections despite earnings per share missing expectations. Canaccord Genuity adjusted its price target to $482 from $490, maintaining a Buy rating due to higher operating expense assumptions affecting earnings per share estimates. Barclays maintained an Equalweight rating with a $350 price target, emphasizing Tesla’s focus on AI-driven initiatives such as Robotaxi and Optimus robots. Needham held its Hold rating, citing fair valuation in light of Tesla’s leadership in electrification and energy storage.
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