Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

‘Tesla magic is back’ says BCA – double upgrades autos sector

admin by admin
October 25, 2024
in Stock
0
‘Tesla magic is back’ says BCA – double upgrades autos sector
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Investing.com — BCA Research upgraded its view on the Auto & Components sector from underweight to overweight in a note this week, citing a strong recovery led by Tesla (NASDAQ:TSLA)’s unexpected Q3 performance.

Tesla, which dominates the sector by accounting for 80% of its market capitalization, has reignited investor confidence, driving the sector’s improved outlook.

“Tesla never fails to surprise investors,” BCA noted, pointing to the electric vehicle maker’s 22% stock surge following its Q3 results, which reversed all of October’s losses.

This marks a major shift after four consecutive quarters of disappointment amid weaker demand and rising competition from Chinese EV manufacturers.

Tesla’s Q3 earnings provided multiple bright spots. Earnings rose 9% year-over-year, defying expectations of an 11% decline. While sales missed estimates by 1%, BCA believes this is a minor setback: “Sales will rebound further in 2025,” they wrote.

Margins also improved, with Tesla’s CFO Vaibhav Taneja noting, “Our operating expenses declined quarter over quarter and on a year-on-year basis.”

Looking ahead, Tesla is targeting 20-30% growth in deliveries by 2025, with the introduction of new products such as economy EVs in Q1-25 and robotaxis by Q2-25.

Production of the long-awaited Cybertruck is also accelerating, turning the vehicle into a profitable venture.

Furthermore, BCA explained that Tesla’s capital expenditure is another area of strength, with $3.5 billion spent in Q3 alone—largely directed toward AI compute investments.

BCA emphasizes that Tesla’s turnaround has broad market implications. “Tesla’s price is still 30% below its peak, and the stock is likely to continue to outperform the market as long as the economy avoids a recession,” BCA noted.

“We will overweight the industry on a tactical investment horizon,” concluded the firm.

This post appeared first on investing.com

Previous Post

New US tariffs could prompt Signify to move some production from China, CEO says

Next Post

Brazilian consumer confidence dips in October, revealing mixed signals

admin

admin

Next Post
Brazilian consumer confidence dips in October, revealing mixed signals

Brazilian consumer confidence dips in October, revealing mixed signals

Trending News

Boon for low earners? Rachel Reeves likely to announce 6% national minimum wage hike in budget

Boon for low earners? Rachel Reeves likely to announce 6% national minimum wage hike in budget

October 29, 2024
IKEA sales fall 5% after price cuts amid weak housing market

IKEA sales fall 5% after price cuts amid weak housing market

October 10, 2024
Interview: Ed Yardeni says US Fed cut interest rates too much, too soon

Interview: Ed Yardeni says US Fed cut interest rates too much, too soon

October 17, 2024
Subscribe to Insightful Word


    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025

    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025

    Latest News

    • China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll
    • FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more
    • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.