Tesla (NASDAQ:TSLA) once again proves it’s no ordinary stock. In a market where a double-digit earnings miss usually triggers a brutal sell-off, Tesla is rewriting the playbook.
Tesla’s earnings report last week delivered a slew of weak figures, including a 20% year-over-year decline in automotive revenues and a significant earnings miss of around 30% relative to consensus estimates. Still, having already revealed weakening delivery numbers for the first quarter, the poor showing came as little surprise to investors.
Even so, few could have predicted what came next. Instead of tumbling, Tesla’s stock has vaulted 20% higher since the report hit the wires.
Arguably the biggest headline emerging from last week’s earnings call was that CEO Elon Musk would be winding down his DOGE role to fully refocus on steering Tesla’s future.
One common knock against Tesla has been Musk’s tendency to overpromise and under-deliver. But not everyone is buying that narrative. One top investor, known by the pseudonym Geneva Investor, sees things differently.
“I view Tesla’s Energy segment, growing from $1.1 billion in 2017 to $10 billion in 2024, as proof it can diversify and scale new businesses effectively,” explains the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
In fact, in one “moderately bullish” scenario that Geneva Investor foresees, Tesla would enjoy revenue growth of 185%, drawing from the five different segments of automotive, energy, services, robotics, and robotaxis.
“Overall, I do not think that a +185% top line growth for Tesla is unrealistic in the mid to long term, especially if the company manages to successfully expand into Robotics and Robotaxis,” adds Geneva Investor.
Though volatility will be a constant companion, for those with the patience to persevere, the investor argues in favor of loading up for the long haul.
“Based on what Musk has executed with Automotive and Energy, I find it realistic Tesla can grow beyond its current valuation in a matter of 5 to 10 years,” concludes Geneva Investor, who rates TSLA shares a Buy. (To watch Geneva Investor’s track record, click here)
Wall Street, however, isn’t quite as enthused. TSLA carries a Hold (i.e., Neutral) consensus rating, based on 17 Buys, 11 Holds, and 12 Sells. Analysts’ average price target of $284.74 suggests the shares will stay rangebound for the time being. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.