We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Investors Still Buy Tesla Stock After Such an Extensive Rally?
Impressively outperforming the broader indexes, and many of its auto peers such as General Motors (GM - Free Report) and Ford (F - Free Report) , Tesla (TSLA - Free Report) shares have rallied +25% in December and are up over +75% year to date.
Investors may certainly be wondering if they should chase the surge in the EV leader’s stock and if Tesla should have a spot in their portfolio as we edge closer to the new year.
Image Source: Zacks Investment Research
Why Market Sentiment is High for TSLA
Leading to high investor sentiment for Tesla is that many analysts have remained bullish on the company’s long-term initiatives. This includes the expansion of Full Self-Driving (FSD) or autonomous vehicle production in its EV fleet along with the planned launch of robotaxis.
Also sparking the continued surge in TSLA is the re-election of Donald Trump who has appointed Tesla CEO Elon Musk as a co-leader to head the new Department of Government Efficiency (DOGE).
While Musk will not be an official member of the President’s cabinet, the Trump administrations deregulation stance in favor of EV manufacturers has led to much optimism in terms of benefiting Tesla’s operations and expansion plans.
Tesla’s Growth Trajectory
Based on Zacks estimates, Tesla’s total sales are now expected to increase 3% in fiscal 2024 and are projected to expand another 17% in FY25 to $117.58 billion.
On the bottom line, annual earnings are expected to dip to $2.47 per share this year compared to EPS of $3.12 in 2023. However, FY25 EPS is projected to rebound and soar 32% to $3.26 per share.
Image Source: Zacks Investment Research
Positive EPS Revisions
Further supporting the rally in Tesla stock is that FY24 and FY25 EPS estimates have risen 10% and 8% over the last 60 days respectively.
Image Source: Zacks Investment Research
Bottom Line
Based on the trend of positive earnings estimate revisions, Tesla stock currently sports a Zacks Rank #1 (Strong Buy). Furthermore, the implied governmental support Tesla will receive under the Trump administration does suggest TSLA should remain a viable investment going into 2025.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Investors Still Buy Tesla Stock After Such an Extensive Rally?
Impressively outperforming the broader indexes, and many of its auto peers such as General Motors (GM - Free Report) and Ford (F - Free Report) , Tesla (TSLA - Free Report) shares have rallied +25% in December and are up over +75% year to date.
Investors may certainly be wondering if they should chase the surge in the EV leader’s stock and if Tesla should have a spot in their portfolio as we edge closer to the new year.
Image Source: Zacks Investment Research
Why Market Sentiment is High for TSLA
Leading to high investor sentiment for Tesla is that many analysts have remained bullish on the company’s long-term initiatives. This includes the expansion of Full Self-Driving (FSD) or autonomous vehicle production in its EV fleet along with the planned launch of robotaxis.
Also sparking the continued surge in TSLA is the re-election of Donald Trump who has appointed Tesla CEO Elon Musk as a co-leader to head the new Department of Government Efficiency (DOGE).
While Musk will not be an official member of the President’s cabinet, the Trump administrations deregulation stance in favor of EV manufacturers has led to much optimism in terms of benefiting Tesla’s operations and expansion plans.
Tesla’s Growth Trajectory
Based on Zacks estimates, Tesla’s total sales are now expected to increase 3% in fiscal 2024 and are projected to expand another 17% in FY25 to $117.58 billion.
On the bottom line, annual earnings are expected to dip to $2.47 per share this year compared to EPS of $3.12 in 2023. However, FY25 EPS is projected to rebound and soar 32% to $3.26 per share.
Image Source: Zacks Investment Research
Positive EPS Revisions
Further supporting the rally in Tesla stock is that FY24 and FY25 EPS estimates have risen 10% and 8% over the last 60 days respectively.
Image Source: Zacks Investment Research
Bottom Line
Based on the trend of positive earnings estimate revisions, Tesla stock currently sports a Zacks Rank #1 (Strong Buy). Furthermore, the implied governmental support Tesla will receive under the Trump administration does suggest TSLA should remain a viable investment going into 2025.