Intel, Ford and Target rise premarket; Deckers slumps
Investing.com - Benchmark maintained its Buy rating and $475 price target on Tesla (NASDAQ:TSLA), now valued at $1.41 trillion, following the electric vehicle maker’s third-quarter earnings report that exceeded revenue expectations. According to InvestingPro, Tesla’s stock has shown strong momentum with a 105% return over the past year.
Tesla reported third-quarter 2025 revenue of $28.1 billion, surpassing Benchmark’s estimate of $25.9 billion and the FactSet consensus of $26.5 billion. The company’s gross margin reached 18.0%, below Benchmark’s 18.8% projection but above the 17.5% consensus. Based on InvestingPro’s Fair Value analysis, Tesla appears to be trading above its intrinsic value, with a high P/E ratio of 260.
The company faced approximately $400 million in tariff impacts during the quarter, split evenly between its automotive and energy divisions. Despite these headwinds, Tesla’s automotive margin excluding credits improved to 15.4%, benefiting from lower material costs and better fixed-cost absorption as production volumes increased. The company maintains strong financial health with a current ratio of 2.04, indicating robust liquidity to meet short-term obligations.
Tesla’s energy division achieved record deployments, gross profit, and margins in the quarter. The Shanghai Megafactory helped offset some near-term challenges by supplying non-U.S. demand, though tariffs and competition continued to pressure this segment.
Benchmark’s analysis emphasized Tesla’s ongoing execution across autonomy, artificial intelligence, and energy sectors, while highlighting the company’s focus on affordability through vehicle refreshes and its path toward scaling Robotaxi operations.
In other recent news, Tesla’s third-quarter results have prompted several adjustments from analysts. Cantor Fitzgerald raised its price target for Tesla to $510, highlighting the company’s better-than-expected revenue, gross margin, and free cash flow, despite adjusted earnings per share falling slightly below consensus estimates. This growth was attributed to record vehicle deliveries and advancements in Tesla’s energy generation and storage segment. Truist Securities also increased its price target to $406, maintaining a Hold rating, while noting Tesla’s mixed third-quarter results, which lacked forward guidance. Meanwhile, Canaccord Genuity lowered its price target to $482, citing higher operating expense assumptions affecting earnings per share estimates, though it maintained a Buy rating. Needham retained its Hold rating, acknowledging Tesla’s operational discipline and leadership in electrification, but expressed concerns over valuation against aggressive future estimates. Barclays reiterated its Equalweight rating with a $350 price target, emphasizing Tesla’s focus on AI-driven initiatives like Robotaxi and Optimus robots. These developments reflect a diverse range of perspectives on Tesla’s performance and future prospects.
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