David Paul Morris/ Bloomberg/ Contributor/ Getty Images
Key Takeaways
- 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 rose Wednesday as investors focused more on comments made during Tuesday’s earnings conference call than on the disappointing first-quarter results of the electric vehicle manufacturer.
Tesla’s earnings were well below estimates. Automotive revenue fell 20% year-overyear due to a political backlash over CEO Elon’s involvement with the Trump administration.
Musk, however, said during the earnings call on Tuesday that he would begin to scale back his government work in January. Musk said that plans for a cheaper Tesla and fully autonomous vehicles are still 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." Analysts at Morgan Stanley, Deutsche Bank and Bank of America have reiterated their respective price targets of $410 and $345.
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. The stock has still lost more than a third of its worth since the beginning of the year.
