Tesla Earnings Forecast: Will the Stock Continue to Grow

Tesla (NASDAQ:TSLA) is set to report its Q4 2024 financial results on January 29, after the market close. This announcement is of great importance to investors, as it will be the focus of many who follow the stock’s performance and future prospects.

Analysts’ Expectations for Tesla’s Results

Morgan Stanley (NYSE:MS) expects the quarterly gross automotive margin, excluding regulatory credits, to reach 15%. Tesla’s free cash flow (FCF) is also expected to benefit from lower inventory during the fourth quarter. Analysts believe that these factors may support the company’s financial stability in the coming period.

“There will be more focus on the outlook, including the reaffirmation of the 2024 growth target of 20-30%, as well as updates on the new Model Y (Juniper), the FSD rate of change updates, AI infrastructure expansion, Cybercab targets, and Optimus robot milestones,” the analysts said in a note on Friday.

Challenges Ahead

On the other hand, some expect Tesla to face challenges in the future related to electric vehicle (EV) incentives. Reports indicate that these incentives may face opposition that could impact growth in 2025. The expected growth of the EV sector is expected to decline to 10% from 20%, due to increased competition in China, as well as slowing growth in electric trucks. The possibility of eliminating tax incentives could also impact the sustainability of growth.

This has led to some adjustments in the EV penetration rate forecast, which has been lowered to 8.5% in 2025 from 9% in the previous forecast. The company will leverage this data to strengthen its position in financial markets and increase engagement with investors interested in future technologies.

Tesla’s technological future

In addition to the traditional challenges, Tesla is also seeing a lot of interest in humanoid robots. This interest was embodied after Nvidia (NASDAQ:NVDA) CEO Jensen Huang’s presentation at the Consumer Electronics Show, which led to a flood of inquiries from customers. Many investors have become interested in Tesla’s potential in the field of artificial intelligence, which has led analysts to consider Tesla an “embodied AI ETF.” Tesla is seen as one of the major players in the field of artificial intelligence-powered robots. Although analysts have not yet provided precise estimates of the value of these activities in the company’s valuation, they stressed that the development of artificial intelligence infrastructure will significantly change Tesla’s public image and the type of investors who follow the stock.

Trump’s Policy Impact on Tesla

Also, current US policies continue to have a significant impact on the electric vehicle industry. Analysts believe that the policies of the administration of former US President Donald Trump may play a role in accelerating some changes in the electric vehicle industry. These policies may encourage increased domestic production and stimulate innovation in electric vehicle technology. Analysts also noted that over time, the Trump administration’s policies could push the electric vehicle industry toward more domestic sourcing of critical technologies, helping to strengthen U.S. supply chains.

Tesla’s Role in the Future Supply Chain

Analysts expect Tesla to play an increasingly important role in filling the void in the new supply chain for next-generation technologies. These forecasts highlight Tesla’s importance in the future, as much of its growth will depend on its ability to expand into technology and artificial intelligence, as well as expanding its electric vehicle production. According to analysts, Tesla will continue to improve its data collection capabilities across its fleet of vehicles.

Tesla Stock Forecast for the Future

Tesla, the company that revolutionized the electric car industry, continues to achieve remarkable growth. However, with the increasing economic challenges, many are wondering about the future of its stock. Competition is increasing in the electric car sector, and many major companies are competing to develop innovative technologies. However, Tesla remains in the lead thanks to its continuous innovations, such as high-performance electric cars and long-lasting batteries.

One of the important factors that will affect Tesla is the expansion in global markets. The company intends to open new factories in various markets such as China and Europe. This expansion enhances its ability to meet the growing demand, thus contributing to increasing its sales.

As for technology, Tesla continues to invest in self-driving technologies. If the company succeeds in improving this technology, the stock value could witness significant jumps. Self-driving is one of the most prominent innovations that attract the attention of the global market.

However, there are challenges that Tesla may face, such as changes in government policies. Some governments provide huge incentives to support electric cars. However, with political changes, these incentives may be affected. Therefore, the impact of government policies will remain pivotal in determining the company’s growth.

In addition, the slowdown in the global economy may affect the demand for electric cars. However, if Tesla can adapt to these changes, it will likely continue to succeed. Based on these factors, Tesla stock is expected to see some volatility, but growth opportunities remain.

Potential challenges facing Tesla include opposition to electric vehicle (EV) incentives, which could impact its volume growth forecast for fiscal 2025. Morgan Stanley notes that buy-side expectations now align more with 10% growth rather than 20%, citing increased competition in China, slowing EV volumes, and the potential phase-out of EV tax incentives.

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