Still buy on the Tesla stock, which today extends the earnings following the publication of the quarterly report – which highlighted profits and turnover at record levels – equal in yesterday’s session to + 3%.
The prices of the electric car manufacturer giant founded by Elon Musk advance by more than + 1% taking the stock over $ 900 and the giant’s capitalization close to $ 900 billion, three times the market value of Toyota and 35%, he points out. Barron’s, of the capitalization of all car manufacturers in the world. The Barron’s article points out that Tesla now has a price-to-earnings ratio that corresponds to 111 times the estimated earnings for 2022, compared to the P / E ratio of Toyota, an auto maker taken as an example of traditional car companies. equal to just 9.4. And yesterday a Bloomberg article recalled that TSLA is the most expensive stock in the NYSE + FANG Index, which is also made up of Nvidia, Alphabet, Apple, Twitter, Facebook, Amazon, Netflix, Alibaba and Baidu. And that’s not exactly good news.
Going back to the balance sheet, the electric car giant founded by Elon Musk reported a net profit (GAAP) of $ 1.62 billion in the third quarter of 2021, surpassing the $ 1 billion mark for the second time, significantly higher than profit. net of $ 331 million in the third quarter of 2020, and a record for the third consecutive quarter.
Adjusted EPS was $ 1.86, better than the $ 1.59 expected from the Refinitiv consensus and also the $ 1.67 expected from the Bloomberg consensus. On the earnings front, Tesla did therefore better than forecasts.
On the other hand, revenue disappointed, albeit climbing 57% to $ 13.76 billion, also a record level but lower – in relative terms not by much – compared to the $ 13.91 billion forecast by Bloomberg’s consensus.
The Tesla stock was however affected by at least two upgrades after the release of the balance sheet. Baird analysts raised the target price from $ 764 to $ 888, while Wedbush took the target price from $ 1000 to $ 1,100. Barron’s presents the Tesla case by talking about a skyrocketing stock rating that delights bulls by disgusting bears.