Tesla Motors (TSLA) reported its Q4 2024 earnings, revealing a mixed performance that led BofA Global Research to maintain a "Neutral" rating with a price objective of $490. The results were bolstered by a $600 million gain from Bitcoin investments, but gross margins fell short at 16.3% compared to BofA's estimate of 18.8%, due to lower average selling prices and increased incentives.
The report highlights several positives, including the on-track launch of Robotaxi in Austin by mid-2025 and strong performance in energy storage, with deployments expected to grow over 50% y/y. However, headwinds such as potential volume risks in Q1 2025 due to the Model Y changeover, lower pricing, and tariff risks pose challenges. BofA notes, "While there could be meaningful long-term potential, the present value of Optimus is currently a smaller part of TSLA's valuation."
Tesla's 2025 EPS estimate was adjusted from $3.15 to $3.05, reflecting the anticipated impact of the Model Y production shift. Despite these adjustments, the price objective remains unchanged, based on a sum-of-the-parts analysis.
Tesla was trading at $399.21, up 2.60% on January 30, at 9:40.