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Key Takeaways
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Tesla is scheduled to post its fourth-quarter earnings report after the market closes Wednesday, with revenue expected to rise from the same time last year.
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Earlier this month, Tesla recorded its first year-over-year decline in full-year vehicle deliveries in the company's history.
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Analysts largely think Tesla will benefit from CEO Elon Musk's proximity to the Trump administration, as the connection may clear the regulatory path for some of Tesla's future projects.
Tesla (TSLA) is set to report fourth-quarter earnings after the bell Wednesday, with analysts mostly optimistic about the link between Chief Executive Officer (CEO) Elon Musk and U.S. President Donald Trump.
Despite its rally since the U.S. election, analysts remain divided on Tesla stock, with the brokers following the company who are tracked by Visible Alpha divided between nine "buy," six "hold," and three "sell" ratings. The electric vehicle maker also has an average stock price target of about $362, about 12% below its Friday closing price, suggesting some analysts think the post-election rally has driven the stock too high.
Analysts expect Tesla to post revenue of $27.27 billion for the fourth quarter, with net income expected to come in at $2.31 billion, or 65 cents per share. In the same quarter last year, Tesla recorded $25.17 billion in revenue and $7.93 billion in net income, as profit was boosted by more than $5 billion in adjustments because of the "release of valuation allowance on deferred tax assets."
Earlier this month, Tesla stock was hit as the company's production and delivery numbers for the quarter came in short of expectations, giving Tesla its first year-over-year decline in full-year vehicle deliveries in the company's history.
Analysts See Tesla Benefiting From Musk-Trump Connection
Analysts from Wedbush Securities, Morgan Stanley, and Piper Sandler all recently lifted their price targets for Tesla stock to $550, $430, and $500, respectively.
The Wedbush analysts noted that they believe the company will benefit from Musk's proximity to Trump's administration during its second term. Trump's administration could provide an easier regulatory path to things like approval for new versions of Tesla's self-driving software, and for its autonomous "robotaxis" to hit the road, the analysts wrote.
Piper Sandler analysts said they believe investors will have a clearer picture of Tesla's future this time next year, when the timeline for things like new product releases, new versions of the company's self-driving software, and its other artificial intelligence (AI) projects could be more definitive.