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On Thursday, Stifel analysts maintained a Hold rating on Tesla stock (NASDAQ:TSLA) with a steadfast price target of $492.00. The firm’s analysis acknowledged mixed results in Tesla’s fourth quarter of 2024, balancing robust financial achievements against some revenue and margin shortfalls. According to InvestingPro data, Tesla currently trades at a P/E ratio of 96.8, suggesting a premium valuation relative to peers. The stock has shown significant volatility with a beta of 2.3, making it particularly sensitive to market movements.
Tesla’s adjusted EBITDA for the fourth quarter surpassed expectations, reaching margins of 19.1%, which was above both the 17.0% consensus and Stifel’s own 16.3% estimate. The electric vehicle giant also reported a strong free cash flow (FCF) of $2.03 billion, outperforming the consensus of $1.32 billion. A significant reduction in the cost of goods sold (COGS) per vehicle was noted, attributed to improvements in raw material costs. InvestingPro analysis reveals that Tesla maintains strong financial health with a ’GOOD’ overall score, though its gross profit margin stands at 18.23% for the last twelve months. Want deeper insights? InvestingPro offers an extensive Pro Research Report covering Tesla’s complete financial picture. Furthermore, Tesla has set strong expectations for production growth in 2025, particularly with the anticipated output of lower-priced models in the first half of the year. The company also projects at least a 50% increase in energy storage deployments in 2025 and continues to make strides in the development of Full Self-Driving (FSD) and Robotaxi technologies.
However, not all indicators were positive. Tesla’s fourth-quarter revenue did not meet analysts’ expectations, falling short by 6%. Additionally, gross margins came in at 16.3%, which was 200 basis points below Stifel’s estimate and 240 basis points under the consensus. There was also a noted decrease in gross profit per vehicle sold.
Despite these challenges, Stifel remains confident in Tesla’s strategic positioning. The analysts underscored the importance of Tesla’s advancements in FSD and Robotaxi capabilities, which they believe will be critical value drivers for the company moving forward. The firm’s reiterated Hold rating suggests a neutral stance on the stock, indicating that the analysts see the current price as fairly reflecting the company’s value based on the information available. With a market capitalization of $1.25 trillion and revenue of $97.15 billion, Tesla remains a dominant force in the automotive industry. InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value estimate, with 21 additional exclusive insights available to subscribers.
In other recent news, Tesla has reported its fourth-quarter and full-year 2024 financials, revealing an annual revenue of $97.15 billion. Despite near-term challenges, Tesla maintains strong financial health with more cash than debt, and a robust free cash flow. Analysts from firms including Canaccord Genuity, Piper Sandler, Baird, Jefferies, and Morgan Stanley (NYSE:MS) have provided varying outlooks on Tesla’s stock, reflecting differing degrees of optimism about the company’s future performance.
Tesla’s progress in autonomous driving technology is under scrutiny, as it could have significant implications for future growth. The anticipated deployment of Tesla’s unsupervised vehicles in Austin represents a critical milestone for the company. Additionally, Tesla has introduced a new autonomous driving feature within its Fremont facility, indicating a step towards full self-driving capabilities.
However, recent developments also include challenges. Tesla faces a complaint from the Union of Swedish Electricians over alleged unauthorized electrical work at its charging stations. Furthermore, Tesla, along with BMW (ETR:BMWG) and several Chinese manufacturers, is challenging the European Union’s tariffs on China-made electric vehicles. These developments provide a snapshot of Tesla’s current activities and market position.
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