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After Tesla Reported a Quarterly Profit, Here’s What Analysts Have Had to Say…

Updated: 29 Jul 2021

Tesla reported its second-quarter earnings on Monday, beating analyst expectations…

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The electric vehicle firm reported earnings per share of $1.45 compared to an expected $0.98 and revenue of $11.96 billion, well above the expected $11.3 billion anticipated.

Since the results, several analysts have altered their price targets for the stock. Here's what they have had to say…

Goldman Sachs analyst Mark Delaney raised Tesla's price target to $875 from $860, keeping a Buy rating on the stock. Delaney told investors in a research note that the company's strong automotive gross margin minus regulatory credits this quarter despite headwinds from supply chain shortages and input costs, as well as its plan to grow capacity, are positive signs for its future earnings potential.

Citi analyst Itay Michaeli said Tesla's “solid beat” resulted from stronger pricing and operating leverage, better results in energy, and lower spending. In addition, Michaeli stated that the earnings report from Tesla shows “strong execution in a volatile operating environment.”

However, the Citi analyst did say that some of the factors which increased the company's Q2 margin appear to be common across automakers in Q2. Michaeli initially kept a sell rating and $175 price target on the stock, adding that the updates from Tesla won't change the “bull/bear debate all that much.” However, on Wednesday, he raised the firms' price target to $209 to reflect the Q2 margin beat.

Morgan Stanley analyst Adam Jonas also doesn't see a change in the bull/bear debate for Tesla. Jonas said he believes the direction for Tesla stock is “modestly higher.”

Tesla is “not only among the fastest growing auto companies in the world, it is also one of the most profitable,” Jonas said in a note to investors. The Morgan Stanley analyst kept an Overweight rating and $900 price target on Tesla shares.

Tesla shares closed Wednesday's session at $646.98 and are down 0.15% at $646 premarket on Thursday.

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