Tesla Shares Surge 8%, Highest Gain in Nine Months
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy TSLA?
Source: seekingalpha
- Significant Price Surge: Tesla shares surged 8% on Wednesday, marking the largest single-day gain in over nine months, pushing the stock to its highest level since March 25, indicating improved short-term momentum.
- Technical Indicator Breakthrough: This rally lifted Tesla's stock above its 20-day and 50-day moving averages, which are often seen as signals of improving trends, potentially attracting more investor interest.
- Year-to-Date Performance Under Pressure: Despite the sharp increase, Tesla is still down 13.6% year-to-date and has declined 10.7% over the past six months, reflecting ongoing market volatility and investor uncertainty.
- Impact on ETF Market: Tesla's rise is rippling through the ETF market, as the stock is held across 498 ETFs, with the GraniteShares 1.25x Long Tesla Daily ETF having a 78.32% allocation, highlighting strong market interest in Tesla.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 364.200
Low
25.28
Averages
401.93
High
600.00
Current: 364.200
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysts Advise Caution on Tesla Ahead of Earnings
- Delivery Miss: Tesla produced 408,000 EVs in Q1 but sold only 358,000, missing its delivery target, which may negatively impact investor confidence and lead to stock price volatility.
- Analyst Rating Adjustments: TD Cowen lowered Tesla's price target to $490 per share while maintaining a buy rating, expressing caution about the upcoming earnings report, as the delivery miss could affect market expectations.
- Capital Expenditure Concerns: Barclays analysts worry about Tesla's new 'Terafab' chip venture, estimating costs could rise into the trillions, potentially eroding cash flow and impacting profitability, posing challenges for the company's future growth.
- Sales Growth Expectations: Despite delivery challenges, analysts expect Tesla to achieve a 17% sales growth this quarter, with revenues exceeding $22.6 billion and projected earnings per share of $0.38, representing a 41% increase from last year, providing hope for the company's future.
See More
Tesla's Q1 Earnings Preview and AI Developments
- Earnings Expectations: Tesla is set to report its Q1 earnings on April 22, with analysts forecasting revenue of $22.82 billion and earnings per share of $0.39, both exceeding the corresponding quarter of 2025, indicating sustained growth potential in the market.
- AI5 Chip Development: CEO Elon Musk confirmed the completion of the design for the next-gen AI5 chip, which is expected to become “one of the most produced AI chips ever,” and will be utilized in the upcoming humanoid robot Optimus and supercomputer clusters, marking a significant advancement in Tesla's AI capabilities.
- Capital Expenditure Concerns: Barclays maintains an ‘Equal Weight’ rating on Tesla with a $360 price target, expressing concerns over the incremental spending required for Tesla's physical AI projects, particularly the Terafab semiconductor fabrication plant in collaboration with SpaceX, which could demand trillions in investment.
- Investor Sentiment Shift: Retail sentiment around TSLA stock has shifted from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, with message volume remaining high, reflecting optimistic expectations for the upcoming earnings report despite Tesla's Q1 delivery miss.
See More
S&P 500 Hits New Yearly High as Tech Stocks Rally
- S&P 500 Performance: The S&P 500 reached a new intraday high on Wednesday, briefly surpassing 7,000 points, indicating a rebound from the Iran war sell-off, and needs to close above 6,978.6 to break its record closing high set on January 27.
- Tech Stock Strength: Major tech stocks like Apple, Meta, Broadcom, Tesla, and Microsoft propelled the index higher, while beaten-down enterprise software names such as Salesforce and ServiceNow extended their rebounds from multiyear lows, showcasing a robust recovery in the tech sector.
- Industrial Sector Pressure: The industrial sector was the worst performer in the S&P 500, with Barclays analyst highlighting that recent changes in Section 232 metal tariffs may have a larger-than-expected impact on the group, necessitating close monitoring of upcoming industrial earnings reports.
- CoreWeave Major Deal: CoreWeave announced a significant partnership with Jane Street, committing approximately $6 billion for access to next-generation computing capabilities, illustrating the broad impact of AI technology across various industries, with Nvidia's AI platform emerging as the technology of choice.
See More
Tesla Stock Rises Amid Analyst Caution Ahead of Earnings
- Stock Surge: Tesla's stock rose 7.6% to $390.64 by midday Wednesday, reflecting cautious optimism in the market ahead of its upcoming Q1 earnings report, despite analysts expressing reserved expectations.
- Analyst Expectations: TD Cowen lowered its price target for Tesla to $490 per share while maintaining a buy rating, suggesting that the delivery miss and lack of positive news on Robotaxis could lower market expectations, potentially creating favorable conditions for the earnings report.
- Spending Concerns: Barclays analysts expressed worries about Tesla's new 'Terafab' chip project, speculating that costs could escalate into the 'mid-single digit trillion dollar range', which may impact Tesla's cash flow and profitability, especially with capital expenditures projected at $20 billion this year.
- Sales Growth Outlook: Despite missing delivery targets, analysts expect Tesla to achieve a 17% sales growth in Q1, with revenues exceeding $22.6 billion and projected earnings per share of $0.38, marking a 41% increase from last year and potentially supporting the stock price.
See More
Wall Street Mixed as Banks Post Strong Earnings Amid Market Divergence
- Strong Bank Performance: Bank of America reported an EPS of $1.11, a 25% year-over-year increase, reflecting a resilient U.S. economy with revenues hitting $30.3 billion and growth across all business segments, bolstering market confidence.
- Tech Stocks Lead Gains: Microsoft rose 3.8%, Apple climbed 2.5%, and Tesla surged 6.1%, with these heavyweight tech stocks providing robust support for market-cap weighted indices, driving the Nasdaq-100 up by 0.6%.
- Dow Jones Under Pressure: The Dow Jones Industrial Average fell 0.4% due to Caterpillar's 4.5% drop and Goldman Sachs' sudden morning reversal, highlighting the significant impact of individual stocks on price-weighted indices.
- Complex Market Outlook: Despite strong performance from the financial sector, oil supply constraints could lead to a recession by year-end, leaving the global economy fragile in this complicated scenario, prompting investors to remain vigilant and diversified.
See More
U.S. Stocks Fluctuate as Tesla Soars 6.1%
- Tesla's Price Surge: Tesla's stock jumped 6.1% driven by bullish analyst notes and news about custom self-driving chips, indicating strong market confidence in its technological advancements, which could further boost investor sentiment ahead of its upcoming earnings report.
- Strong Earnings from Bank of America: Bank of America reported Q1 EPS of $1.11, a 25% increase year-over-year, with revenues hitting $30.3 billion and growth across all business segments, as the CEO highlighted this as evidence of a resilient American economy, reflecting stability in the financial sector amid current economic conditions.
- Divergent Market Performance: While the Nasdaq-100 rose 0.6% and the S&P 500 gained 0.4%, the Dow Jones Industrial Average fell 0.4% due to Caterpillar's 4.5% drop, illustrating the significant impact of individual stocks on index performance, particularly given the price-weighted nature of the Dow.
- Macroeconomic Concerns: Despite strong performance in the financial sector, concerns about oil supply constraints potentially leading to a recession later this year highlight the fragility of the global economy in a complex scenario, prompting investors to remain vigilant and diversify their portfolios to mitigate risks.
See More
Analysts Advise Caution on Tesla Ahead of Earnings
- Delivery Miss: Tesla produced 408,000 EVs in Q1 but sold only 358,000, missing its delivery target, which may negatively impact investor confidence and lead to stock price volatility.
- Analyst Rating Adjustments: TD Cowen lowered Tesla's price target to $490 per share while maintaining a buy rating, expressing caution about the upcoming earnings report, as the delivery miss could affect market expectations.
- Capital Expenditure Concerns: Barclays analysts worry about Tesla's new 'Terafab' chip venture, estimating costs could rise into the trillions, potentially eroding cash flow and impacting profitability, posing challenges for the company's future growth.
- Sales Growth Expectations: Despite delivery challenges, analysts expect Tesla to achieve a 17% sales growth this quarter, with revenues exceeding $22.6 billion and projected earnings per share of $0.38, representing a 41% increase from last year, providing hope for the company's future.
See More
Tesla's Q1 Earnings Preview and AI Developments
- Earnings Expectations: Tesla is set to report its Q1 earnings on April 22, with analysts forecasting revenue of $22.82 billion and earnings per share of $0.39, both exceeding the corresponding quarter of 2025, indicating sustained growth potential in the market.
- AI5 Chip Development: CEO Elon Musk confirmed the completion of the design for the next-gen AI5 chip, which is expected to become “one of the most produced AI chips ever,” and will be utilized in the upcoming humanoid robot Optimus and supercomputer clusters, marking a significant advancement in Tesla's AI capabilities.
- Capital Expenditure Concerns: Barclays maintains an ‘Equal Weight’ rating on Tesla with a $360 price target, expressing concerns over the incremental spending required for Tesla's physical AI projects, particularly the Terafab semiconductor fabrication plant in collaboration with SpaceX, which could demand trillions in investment.
- Investor Sentiment Shift: Retail sentiment around TSLA stock has shifted from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, with message volume remaining high, reflecting optimistic expectations for the upcoming earnings report despite Tesla's Q1 delivery miss.
See More
S&P 500 Hits New Yearly High as Tech Stocks Rally
- S&P 500 Performance: The S&P 500 reached a new intraday high on Wednesday, briefly surpassing 7,000 points, indicating a rebound from the Iran war sell-off, and needs to close above 6,978.6 to break its record closing high set on January 27.
- Tech Stock Strength: Major tech stocks like Apple, Meta, Broadcom, Tesla, and Microsoft propelled the index higher, while beaten-down enterprise software names such as Salesforce and ServiceNow extended their rebounds from multiyear lows, showcasing a robust recovery in the tech sector.
- Industrial Sector Pressure: The industrial sector was the worst performer in the S&P 500, with Barclays analyst highlighting that recent changes in Section 232 metal tariffs may have a larger-than-expected impact on the group, necessitating close monitoring of upcoming industrial earnings reports.
- CoreWeave Major Deal: CoreWeave announced a significant partnership with Jane Street, committing approximately $6 billion for access to next-generation computing capabilities, illustrating the broad impact of AI technology across various industries, with Nvidia's AI platform emerging as the technology of choice.
See More
Tesla Stock Rises Amid Analyst Caution Ahead of Earnings
- Stock Surge: Tesla's stock rose 7.6% to $390.64 by midday Wednesday, reflecting cautious optimism in the market ahead of its upcoming Q1 earnings report, despite analysts expressing reserved expectations.
- Analyst Expectations: TD Cowen lowered its price target for Tesla to $490 per share while maintaining a buy rating, suggesting that the delivery miss and lack of positive news on Robotaxis could lower market expectations, potentially creating favorable conditions for the earnings report.
- Spending Concerns: Barclays analysts expressed worries about Tesla's new 'Terafab' chip project, speculating that costs could escalate into the 'mid-single digit trillion dollar range', which may impact Tesla's cash flow and profitability, especially with capital expenditures projected at $20 billion this year.
- Sales Growth Outlook: Despite missing delivery targets, analysts expect Tesla to achieve a 17% sales growth in Q1, with revenues exceeding $22.6 billion and projected earnings per share of $0.38, marking a 41% increase from last year and potentially supporting the stock price.
See More
Wall Street Mixed as Banks Post Strong Earnings Amid Market Divergence
- Strong Bank Performance: Bank of America reported an EPS of $1.11, a 25% year-over-year increase, reflecting a resilient U.S. economy with revenues hitting $30.3 billion and growth across all business segments, bolstering market confidence.
- Tech Stocks Lead Gains: Microsoft rose 3.8%, Apple climbed 2.5%, and Tesla surged 6.1%, with these heavyweight tech stocks providing robust support for market-cap weighted indices, driving the Nasdaq-100 up by 0.6%.
- Dow Jones Under Pressure: The Dow Jones Industrial Average fell 0.4% due to Caterpillar's 4.5% drop and Goldman Sachs' sudden morning reversal, highlighting the significant impact of individual stocks on price-weighted indices.
- Complex Market Outlook: Despite strong performance from the financial sector, oil supply constraints could lead to a recession by year-end, leaving the global economy fragile in this complicated scenario, prompting investors to remain vigilant and diversified.
See More
U.S. Stocks Fluctuate as Tesla Soars 6.1%
- Tesla's Price Surge: Tesla's stock jumped 6.1% driven by bullish analyst notes and news about custom self-driving chips, indicating strong market confidence in its technological advancements, which could further boost investor sentiment ahead of its upcoming earnings report.
- Strong Earnings from Bank of America: Bank of America reported Q1 EPS of $1.11, a 25% increase year-over-year, with revenues hitting $30.3 billion and growth across all business segments, as the CEO highlighted this as evidence of a resilient American economy, reflecting stability in the financial sector amid current economic conditions.
- Divergent Market Performance: While the Nasdaq-100 rose 0.6% and the S&P 500 gained 0.4%, the Dow Jones Industrial Average fell 0.4% due to Caterpillar's 4.5% drop, illustrating the significant impact of individual stocks on index performance, particularly given the price-weighted nature of the Dow.
- Macroeconomic Concerns: Despite strong performance in the financial sector, concerns about oil supply constraints potentially leading to a recession later this year highlight the fragility of the global economy in a complex scenario, prompting investors to remain vigilant and diversify their portfolios to mitigate risks.
See More
