- Summary:
- Hype or value? Tesla stock price continues to rise, two days after reporting lower-than-expected quarterly earnings. Does it make sense?
Tesla stock price returned to the upside on Friday, rising by 3% to trade at $412 in the first hour of trading. The EV maker’s quarterly earnings report has injected fresh impetus into the stock, whose gains stand at 5.5% year-to-date as of this writing. Ironically, it has stayed up despite missing the consensus forecast estimates.
Tesla’s revenues for the quarter ending December 2024 came in at $25.71 billion, significantly below the forecast figure of $27.26 billion. Its earnings per share (EPS) was 73 cents, falling short of the expected figure of 76 cents. However, despite the soft earnings, investors have remained optimistic, drivrn by Tesla CEO Elon Musk’s upbeat tone regarding the company’s autonomous driving prospects.
Musk was modest in his outlook for Tesla (NASDAQ: TSLA) in 2025, describing it as a year for doing groundwork for exceptional returns in 2026, 2027 and 2028. Investors turned a blind eye to soft sales forecast this year, instead giving greater weight to the surprise close date for commercial testing of robotaxis and its humanoid robot, Optimus.
Tesla’s Full Self Drive (FSD) robotaxis will hit the roads on a trial basis starting June 2025, in Austin, Texas. In addition, the rollout will be expanded to more cities in the United States by year’s end. Analysts had initially estimated that FSD testing would come in 2026.
By bringing forward the date, the company has given investors reason to be optimistic, as it means a shorter turnaround for a new revenue stream. Musk was even more bullish on Optimus, stating that it could hit the stores as early as H1 2026. This sentiment sets up Tesla stock price for a sustained uptrend in 2025.
Tesla Stock Price Prediction
Pivot: Tesla stock price pivots at $408 and the upside will prevail if action stays above that level.
Resistance: TSLA price will likely meet the first barrier at $419. However, a stronger momentum will break above that level and potentially test $425.
Support: The first support will likely be at $397. Moreover, breaking below that level will invalidate the upside narrative. Also, that momentum could drive the stock lower and potentially test $390.
