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
10
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

Morgan Stanley upgrades Brinker International on Chili turnaround, improving sales

Morgan Stanley upgrades Brinker International on Chili turnaround, improving sales

December 20, 2024
Long RGP: RGP’s Strong Q2 Performance Signals Potential for Bullish Momentum

Long RGP: RGP’s Strong Q2 Performance Signals Potential for Bullish Momentum

January 3, 2025
Bristol-Myers Squibb stock gains on FDA approval of schizophrenia treatment

Bristol-Myers Squibb stock gains on FDA approval of schizophrenia treatment

September 27, 2024
Subscribe to Insightful Word


    Recent News

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    August 27, 2025
    Webull stock price is in a deep slumber: will it wake up after earnings?

    Webull stock price is in a deep slumber: will it wake up after earnings?

    August 27, 2025
    Wall Street braces as Nvidia earnings test AI boom and China risks

    Wall Street braces as Nvidia earnings test AI boom and China risks

    August 27, 2025
    US stocks open flat ahead of Nvidia earnings: Dow up 25 pts, Nasdaq slips 0.1%

    US stocks open flat ahead of Nvidia earnings: Dow up 25 pts, Nasdaq slips 0.1%

    August 27, 2025

    Recent News

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    August 27, 2025
    Webull stock price is in a deep slumber: will it wake up after earnings?

    Webull stock price is in a deep slumber: will it wake up after earnings?

    August 27, 2025

    Latest News

    • Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates
    • Webull stock price is in a deep slumber: will it wake up after earnings?
    • Wall Street braces as Nvidia earnings test AI boom and China risks

    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.