Tesla Stock Takes A Morning Breather Before Looking To Retake $480

Tesla (NASDAQ: TSLA) has recently witnessed remarkable gains in its stock prices, marking significant milestones that have not been achieved for several years. Since the U.S. presidential election on November 5, the stock has surged by over 90%, with pauses for breath few and far between.

This morning, TSLA started with a gap down at $466.12, having closed yesterday's session at $479.86. Having run the $480 level close, and with a recent all time high hit at $483.99, the stock is pushing to move level on the day, with the bulls doing their best in the lead up to the Fed report.

Barclays came out with a comment this morning that may have caused some to pause and consider, intimating that a Trump win was “not as positive as you might think” for Tesla, and that there appears to be a ‘sharp disconnect' between price action, and fundamentals.

Operationally, in the third quarter Tesla reported an 8% increase in revenue, amounting to $25 billion, and a gross margin expansion of 195 basis points. The company's non-GAAP net income rose by 9%, reaching $0.72 per diluted share.

Looking ahead, CEO Elon Musk has announced plans for a 20% to 30% increase in vehicle deliveries next year. Tesla currently holds a substantial share of the battery electric vehicle market, accounting for 17% of sales as of October 2024. Furthermore, Tesla intends to introduce a more affordable model in early 2025, which could expand its customer base.

The company is also focusing on technological advancements with the planned release of an unsupervised version of its full self-driving (FSD) software in 2025. This development is expected to be launched alongside a ride-hailing service in California and Texas. Musk has suggested that the success of FSD could push Tesla's gross margin significantly higher, potentially reaching 70%.

As the autonomous vehicle market grows, with sales projected to hit $214 billion by 2030, Tesla is primed for substantial involvement. The company's humanoid robot, Optimus, is also expected to be a significant revenue driver, with sales projected to reach $7 trillion by 2050.

Analysts continue to be mixed on this one, with Mizuho in recent days making a huge upgrade on their previous price target of $230, to $515. Taking a stock from Neutral to Outperform, with a price target more than doubling takes some doing, but the firm sees upside in EV tax credit repeals, and the autonomous segment.