Join our community of smart investors

Tesla still buoyed by 'blue-sky' assumptions

Selling prices have been cut across the range
Tesla still buoyed by 'blue-sky' assumptionsPublished on January 30, 2025
  • Q4 earnings and revenue miss
  • AI prospects still underpin rating

Mixed messages within its Q4 release saw the share price of Tesla (US:TSLA) oscillate in after-hours trading on Nasdaq (which can run as late as 8pm Eastern Time in the US). Both revenues and earnings came up short of expectations in the quarter, but the investment narrative is still bound up with the promise afforded by artificial intelligence (AI) and robotics.

The market continues to respond positively to Donald Trump’s election victory in November, perhaps in expectation that Trump’s victory will result in favourable regulatory reforms, although that presupposes that cash flows won’t be overly constrained by the new administration’s roll-back of (electric vehicle) EV incentives.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Already a subscriber? Sign in