- Tesla shares jumped Wednesday morning, despite the EV maker’s first-quarter results missing analysts’ estimates.
- CEO Elon Musk said in Tuesday’s earnings call that he will scale back his government work starting next month, and that plans for a cheaper Tesla model and fully self-driving vehicles remain on track.
- Longtime Tesla bull Dan Ives of Wedbush raised his price target for Tesla’s stock following what he called a “pivotal conference call for Musk to turn the corner from this dark chapter.”
Tesla (TSLA) shares climbed Wednesday as investors focused on comments from Tuesday’s earnings call rather than the electric vehicle maker’s disappointing first-quarter results.
Tesla’s earnings came in well short of estimates, with automotive revenue falling 20% year-over-year as Tesla’s sales were hurt amid a political backlash to CEO Elon Musk’s involvement in the Trump administration.
However, Musk said in Tuesday’s earnings call that he will start scaling back his government work next month. Musk also said plans for a cheaper Tesla model and fully self-driving vehicles remain on track.
Longtime Tesla bull Dan Ives of Wedbush raised his price target for Tesla’s stock to $350 from $315 following what he called a “pivotal conference call for Musk to turn the corner from this dark chapter.” Meanwhile, Morgan Stanley, Deutsche Bank, and Bank of America analysts reiterated their price targets of $410, $345, and $305, respectively.
Shares of Tesla were up nearly 6% at $251.41 in early trading Wednesday, amid broader market gains after comments from President Trump eased worries about tariffs and Federal Reserve independence. Still, the stock has lost over a third of its value since the start of the year.
