The Zacks Analyst Blog Tesla, General Motors, Ford and Stellantis

For Immediate ReleasesChicago, IL – January 24, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, Tesla TSLA, General Motors GM, Ford F and Stellantis STLA.Here are highlights from Friday’s Analyst Blog:Is Tesla a Buy Ahead of Q4 Earnings? A Look at Key PredictionsTeslais slated to release fourth-quarter 2024 results on Jan. 29, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 76 cents per share and $27.6 billion, respectively.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The earnings estimate for the to-be-reported quarter has been revised downward by 1 cent over the past 30 days. The bottom-line projection, however, indicates year-over-year growth of 7%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 9.7%.For 2025, the Zacks Consensus Estimate for TSLA’s revenues is pegged at $117.2 billion, implying a rise of 17.5% year over year. The consensus mark for 2025 EPS is pegged at $3.30, implying a contraction of around 34.3% on a year-over-year basis.In the trailing four quarters, this electric vehicle (EV) behemoth missed EPS estimates thrice and beat once, with the average earnings surprise being 0.13%.Tesla, Inc. price-eps-surprise | Tesla, Inc. QuoteQ4 Earnings Whispers for TeslaOur proven model does not conclusively predict an earnings beat for Tesla. The combination of a positiveEarnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.TSLA has an Earnings ESP of -2.65% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Shaping TSLA’s Q4 ResultsIn the fourth quarter, Tesla produced 459,445 (436,718 Model 3/Y and 22,727 other models) vehicles. It delivered 495,570 vehicles (471,930 Model 3/Y and 23,640 other models) globally. While the deliveries were up over 2% year over year and also touched a new quarterly high, they failed to hit even the psychological milestone of 500,000 units. The Zacks Consensus Estimate for deliveries was 517,043 units.Tesla's automotive revenues for the to-be-reported quarter are projected to be $22.5 billion, representing a 4.5% increase year over year. The company offered substantial year-end incentives and discounts, especially on Models Y and S, to boost sales. However, these actions may have put pressure on margins. The Zacks Consensus Estimate for Tesla’s gross margin in its automotive segment is 18.9%, indicating a decline from 20.1% in the September-end quarter.While automotive margins are expected to have been squeezed, Tesla's energy generation and storage business has been gaining traction. In the fourth quarter of 2024, the company deployed 11.0 GWh of energy storage products, up a whopping 243% year over year. With strong demand for its Megapack and Powerwall products, revenues from this segment are estimated at $2.6 billion, implying an 80% increase year over year and gross profit is expected to more than double.Tesla's Services/Other unit is forecast to generate $2.9 billion in revenues (up from $2.16 billion recorded in the year-ago period), driven primarily by its expanding supercharging network. Major automakers like General Motors, Ford and Stellantis are adopting Tesla's NACS charging standard, boosting the segment’s outlook.Tesla Price Performance & ValuationOver the past year, shares of Tesla have doubled, outperforming the industry, sector and S&P 500’s growth.From a valuation perspective, Tesla looks overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 11.25, higher compared to the industry’s 2.43 as well as its own 5-year average.How Should You Play TSLA Ahead of Q4 Earnings?With President Donald Trump returning to the White House, the EV landscape in the United States will see a major shift. Known for his anti-EV stance, Trump has already repealed Biden’s 2021 executive order that set a target of EVs making up 50% of new car sales by 2030. A rollback of the $7,500 EV tax credit is also likely.However, Tesla CEO Elon Musk has downplayed the potential impact, noting that while such changes might slightly affect Tesla, they would be devastating for competitors. Tesla’s dominant scale and brand recognition may allow it to thrive even in a subsidy-free environment. Musk had projected 20-30% delivery growth for 2025 on the last earnings call.Additionally, Trump's plans to raise tariffs on Chinese imports could hinder affordable EV manufacturers like BYD Co and NIO from gaining ground in the United States, reinforcing Tesla’s competitive edge. Further, with Musk leading the newly formed Department of Government Efficiency, regulatory simplifications for autonomous vehicle deployment could act as a tailwind for Tesla’s plans to expand Full Self-Driving capabilities and launch a robotaxi fleet.Tesla’s ambitions are big, but isn’t it too early to bet on those promises? Its valuation also remains lofty at current levels, raising questions about its near-term upside potential. This earnings season, investors will closely monitor Tesla’s profit margins and cash flow to assess its overall financial health. Updates on 2025 delivery targets and progress in the AV space will also be key points of interest.The year 2025 will be a pivotal “prove-it” moment, where the company must showcase its ability to drive sales growth, expand profitability and deliver on its ambitious goals, especially on the AV/robotaxi front. For now, it may be prudent for investors to await Elon Musk’s commentary on the fourth-quarter earnings call before making any decisions.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks