Tesla Motors TSLA had its best day in 11 years, adding $150 billion to the company's market valuation. This is more than the combined value of Ford, GM and Stellantis. The stock skyrocketed 22% following the blockbuster third-quarter 2024 results. Though the electric automaker lagged revenue estimates, it reported its biggest quarterly profit in more than a year and issued upbeat forecasts for 2025 (read: ETFs to Tap Tesla's Solid Q3 Earnings).
With the surge, Tesla reversed all its losses this year, turning positive on a year-to-date basis.
Fueled by the Tesla surge, the ETFs with the largest exposure to this luxury carmaker were the biggest gainers. These include Direxion Daily TSLA Bull 2X Shares TSLL, T-REX 2X Long Tesla Daily Target ETF TSLT, GraniteShares 2x Long TSLA Daily ETF TSLR, Tradr 1.5X Long TSLA Weekly ETF TSLW and GraniteShares 1.25x Long TSLA Daily ETF TSL.
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Q3 Earnings in Brief
Adjusted earnings per share came in at 72 cents, outpacing the Zacks Consensus Estimate of 58 cents and improving from the year-ago earnings of 66 cents. Revenues increased 8% year over year to $25.18 billion but were below the Zacks Consensus Estimate of $25.57 billion.
Earlier this month, Tesla returned to delivery growth in the third quarter after two consecutive quarters of decline and reported the third-largest quarterly number in the company's history. The return to growth shows that some of the incentives that Tesla had rolled out to boost demand are now paying off (read: Tesla Returns to Delivery Growth but Shares Slip: ETFs in Focus).
Tesla’s chief executive, Elon Musk, offered an upbeat outlook for 2025. Musk expects vehicle sales to grow 20% to 30% next year and promised to launch an affordable vehicle, below $30,000 after subsidies, in the first half of 2025. Additionally, Tesla is working toward increasing production in the current quarter and said its new Cybertruck is on track to make a profit by the end of the year.
Musk also reiterated that he expects Tesla to produce a robotaxi called Cybercab in 2026 and said the company will aim to make at least 2 million units annually.
Analysts Lift Target Price on TSLA
Impressed by earnings and an optimistic view, many analysts lifted the target price on Tesla. RBC Capital raised the target price on Tesla to $249 from $236 and keeps an Outperform rating on the shares. Bank of America hiked the price target to 265 from 255, maintaining a Buy rating on the shares, while Goldman Sachs raised the price target to 250 from 230. A Canaccord analyst increased the target on Tesla to $278 from $254 and Wells Fargo hiked its target price to $125 from $120, keeping an underweight rating. CFRA analyst Garrett Nelson is slightly more cautious, though, and lifted the price target by $5 to $225 per share.
The Wall Street average price target for Tesla is $205.88, ranging from a low of $24.86 to a high of $310.00.
ETFs That Soared
T-REX 2X Long Tesla Daily Target ETF (TSLT) – Up 43.9%
T-REX 2X Long Tesla Daily Target ETF seeks daily leveraged investment results to magnify (200%) the daily performance of Tesla. It has AUM of $391.9 million and charges 1.05% in annual fees.
Direxion Daily TSLA Bull 2X Shares (TSLL) – Up 43.7%
With AUM of $2.1 billion, Direxion Daily TSLA Bull 2X Shares is by far the largest U.S.-listed single-stock ETF on the market. It offers two times (200%) the daily percentage change of the common stock of Tesla, charging 86 bps in annual fees (read: 10 Most Heavily Traded ETFs of Q3).
GraniteShares 2x Long TSLA Daily ETF (TSLR) – Up 43.7%
GraniteShares 2x Long TSLA Daily ETF also seeks to offer two times (200%) the daily percentage change of the common stock of Tesla, charging 95 bps in annual fees. It has managed assets worth $55 million in its asset base.
Tradr 1.5X Long TSLA Weekly ETF (TSLW) – Up 33.1%
Tradr 1.5X Long TSLA Weekly ETF (TSLW) tracks 1.5X (150%) the week performance of the Tesla. It has accumulated $1 million in its asset base and charges 1.30% in annual fees.
GraniteShares 1.25x Long TSLA Daily ETF (TSL) – Up 27%
GraniteShares 1.25x Long TSLA Daily ETF offers two times (200%) the daily percentage change of the common stock of Tesla, charging 115 bps in annual fees. It has managed assets worth $8.5 million.
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