Tesla’s third-quarter earnings announcement has generated mixed reactions from market analysts, while General Motors’ latest results have caught the attention of institutional investors.
During Tesla’s Q3 earnings call on October 23, CEO Elon Musk continued to emphasize the company’s focus on autonomy and robotics. Despite disappointing some followers by hinting at the cancellation of a more affordable “Model 2,” analysts remained divided on the company’s outlook.
Several analysts expressed optimism about Tesla’s performance. Canaccord Genuity’s George Gianarikas increased his price target to $278 from $254, maintaining a “Buy” rating based on what he described as impressive margins and overall quarterly results. He noted Tesla’s success in navigating market conditions that challenged other automakers, particularly in China.
Bank of America analyst John Murphy also maintained a buy rating while raising his price target to $265, citing improved gross margins and potential growth opportunities in 2025 with upcoming projects like the Cybercab and ride-hailing infrastructure.
Wedbush analyst Dan Ives emerged as particularly bullish, maintaining an “outperform” rating with a $300 price target. Ives characterized the results as “an early Christmas present for investors,”
highlighting multiple growth catalysts including future FSD
iterations, Tesla Semi, and energy storage developments.
However, some analysts expressed caution. J.P. Morgan’s Ryan Brinkman pointed to concerns about Tesla’s reliance on regulatory credit sales, which reached $739 million in Q3. He warned that this revenue stream could diminish as other automakers expand their electric vehicle production. JPMorgan maintained an “Underweight” rating with a $135 price target.
Goldman Sachs took a middle ground, with analyst Mark Delaney maintaining a “neutral” rating while raising the price target to $250. While acknowledging Tesla’s strong position in EVs and technical capabilities, Delaney expressed concerns about FSD development timelines and potential volatility in auto fundamentals.
Meanwhile, General Motors reported strong Q3 results, driven by robust sales of traditional gas-powered vehicles. The company posted net income of $3.3 billion and raised its full-year earnings forecast to between $14 billion and $15 billion.
GM CEO Mary Barra attributed the success to increased U.S. retail market share, strategic pricing, and progress toward EV targets. However, the company faced challenges, including a $137 million loss in China and a $383 million loss from its Cruise robotaxi service.
The results prompted positive responses from analysts. Wedbush’s Ives praised GM’s performance, maintaining an “outperform” rating and increasing the price target to $60. Several other firms, including J.P. Morgan, Deutsche Bank, and Barclays, raised their price targets following GM’s announcement of plans to buy back approximately 120 million shares by early 2025.
GM’s CFO Paul Jacobson expressed confidence in the company’s trajectory, emphasizing the significant share buyback program as a demonstration of financial strength. The company’s ability to maintain stable pricing across its portfolio while focusing on margins and capital efficiency has contributed to what analysts describe as a long-awaited turnaround in the GM story.