- Tesla stock garners another 3% day after historic rally.
- TSLA stock rose the most in one day on Thursday since May 2014.
- Tesla shares rose 21.9% on Thursday but fell short of stubborn $265 level.
- Q3 margins improve notably as Tesla becomes more efficient at production.
Tesla (TSLA) stock has overcome the much-watched $265 level on Friday, one day after it proved stubborn in the face of the previous session’s rally. On Thursday, Tesla shares had their strongest one-day rally in the past decade. Tesla stock spiked 21.9% on Thursday after the electric vehicle (EV) maker headed by Elon Musk third-quarter earnings that improved margins by shrinking costs.
Tesla also beat the bottom line Wall Street consensus figure. Musk’s company earned $0.72 in adjusted earnings per share (EPS) and $0.62 in GAAP EPS. Both figures were 12 cents above their average estimates. Revenue of $25.18 billion, however, missed the consensus target by $315 million or 1.2%.
TSLA stock has gained some 3% near the middle of Friday’s trading session.
Tesla stock news
Tesla’s stock price hasn’t risen percentage-wise as much as Thursday’s performance in one session since May 2013, more than 11 years ago.
The market especially loved that margins improved in the auto division. Tesla’s internal numbers show that the automotive ex-credits gross margin rate reached 17.1% in the quarter, a healthy jump from the 15.1% consensus estimate. Tesla’s operating margin surged from 6.3% in the previous quarter to 10.8% of sales in Q3.
Musk said that production cost savings were beginning to trickle down in a measurable amount. He gestured toward producing more cheaper models in 2025 but noted clearly that Tesla is a company focused on autonomy. Musk added that he estimates Tesla will grow production by 20% to 30% overall in 2025.
In his typical braggadocio, Musk hinted that its newly-introduced cybercab, an autonomous taxi cab vehicle, will likely begin scaling higher in 2026. He added that Pepsi drivers in a partnership test prefer the Tesla Semi to other options.
Garrett Nelson, an analyst at CFRA, was unimpressed. He hasn’t forgotten that Tesla missed on the bottom line in the four consecutive previous quarters and wonders if the consensus estimate that Tesla will see earnings rise 80% between 2024 and 2026 is too pollyannaish.
Wedbush Securities' Dan Ives thought it was impressive that Tesla could cut prices so drastically and still improve margins. It hints Tesla might still have strong pricing power.
Tesla stock forecast
Tesla shares broke above the $265 resistance level on Friday afternoon, reaching into $267. This aggressive price action tells us that shares of the automaker are not finished with this rally.
The $265 level worked as strong resistance on five occasions since October of last year. The July 11 high at $271 still needs to be overcome though. A break above there will make the market think that the September 2023 high near $279 is possible.
Support sits at $235 and $246 for Tesla.
TSLA daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.