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Wall Street is growing more bullish on Tesla's AI push ahead of earnings

Jan 28, 2025 - businessinsider.com
Tesla is set to report its quarterly earnings, with Wall Street optimistic about the company's AI initiatives, including self-driving technology and robotaxis. Analysts are particularly interested in updates on these projects, despite recent delivery figures causing some concern. The average earnings per share estimate is $0.67, with revenue expected to be $27.2 billion. Analysts from Morgan Stanley, RBC Capital Markets, and Wedbush Securities are generally positive, highlighting Tesla's potential in next-gen manufacturing, regulatory credit sales, and autonomous driving advancements. However, Morningstar's Seth Goldstein warns that Tesla's stock is overvalued and that the production of new models and robotaxis may take longer than expected.

Morgan Stanley's Adam Jonas sees Tesla playing a crucial role in next-gen manufacturing, while RBC Capital Markets anticipates high regulatory credit sales and the introduction of affordable models boosting future deliveries. Wedbush Securities' Dan Ives predicts a significant market cap increase by 2025, driven by autonomous technology. In contrast, Morningstar remains cautious, suggesting that the market may be overestimating Tesla's near-term capabilities and delivery growth.

Key takeaways:

  • Tesla is set to report quarterly earnings with Wall Street optimistic about its AI initiatives, despite recent delivery figures causing a stock slip.
  • Morgan Stanley sees Tesla as a key player in next-gen manufacturing, with a price target of $430, citing potential growth from AI and domestic supply chain developments.
  • RBC Capital Markets expects high regulatory credit sales and energy storage revenues, with a focus on affordable car models boosting deliveries in 2025, and has a price target of $440.
  • Wedbush Securities predicts Tesla could reach a $2 trillion market cap by 2025, driven by autonomous driving advancements, with a price target of $550.
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