Tesla’s stock (TSLA) has jumped 15% after the company reported surprise profits during its Q3 earnings report, and Wall Street analysts are now commenting on the results.

As we previously reported, Tesla announced that it made $6.3 billion in revenue and it reported surprising profits of $1.91 per share (Non-GAAP) — just below expectation for revenue, and way over expectations for earnings.

The market liked it, and the stock jumped up to up to 20% in after-market trading.

This morning, the stock was up 15% after the market opened.

Now Wall Street is weighing in and most analysts are praising Tesla for the quarter.

Daniel Ives from Wedbush said that it was “a potentially game-changing” and “Picasso-like” quarter:

Last night Tesla delivered a potentially ‘game-changing’ 3Q with surprise profitability and strong cash flow signaling what could be a new era for Musk and Fremont going forward. While strong Model 3 deliveries were known and appear to be showing strength into 4Q on the heels of healthy Europe and US demand, the white knuckle unknown variable from the Street was around the bottom line, as Tesla prior to last night had struggled to get out of the red ink. To this point, Tesla delivered a Picasso-like quarter last night with profitability and EBITDA approaching $900 million (Street was at $646 million) that speaks to a business model which has significantly lower costs, more production efficiency, and automotive gross margins approaching 23%, which is extremely impressive on the heels of the lower-margin Model 3 shift.

He increased his price target for Tesla from $220 to $270 per share with a “neutral” rating.

Ives is ranked No. 1,734 out of 5,575 Analysts on TipRanks with a 50% success rate and a 2.1% average return. He has been giving a hold rating on to Tesla’s stock over the last year:

Joseph Spak from RBC Capital Markets said that Tesla seemed more like a normal automaker than the usual startup focused on growth after a quarter highlighted by cost control:

“No growth, but cost control — sounds like an automaker.”

He increased his price target for Tesla from $190 to $220 per share with an “underperform” rating.

Spak is ranked No. 522 out of 5,575 Analysts on TipRanks with a 58% success rate and a 8.3% average return. He has been recommending to sell Tesla’s stock over the last year:

Tesla shorts are feeling the pain of the recent jump in share price following the release of the results.

Ihor Dusaniwsky, managing director of Predictive Analytics at S3 Partners and short interest expert, said that Tesla Shorts are Down $1.4 billion following the earnings:

Prior to today’s price move, TSLA short sellers were up +$2.00 billion in mark-to-market profits. This is down from its year-to-date P\L high of +$5.16 billion of mark-to-market profits before TSLA began its sustained rally in June. With TSLA up almost 17% this morning, TSLA shorts are down -$1.36 billion in mark-to-market losses, wiping out almost 70% of their year-to-date profits.

You can visit our Tesla Q3 earnings news hub for more info about the earnings.

FTC: We use income earning auto affiliate links. More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

About the Author