General Motors, Ford and Tesla

On By Littum

Chicago, IL – December 26, 2024 – Today, Zacks Investment Ideas highlights General Motors GM and Ford F, Tesla TSLA.

Impressively better than the broader indices, and many of its auto peers such as General Motors and Ford, Tesla shares are up +25% in December and are up over +75% year to date.

Investors may be wondering whether to chase the rally in the EV leader’s stock and whether Tesla should have a place in their portfolio as we move closer to the new year.

What leads to high investor satisfaction for Tesla is that many analysts have been positive about the company’s long-term initiatives. This includes the expansion of full self-driving (FSD) or autonomous vehicle production in its EV fleet, along with the planned launch of the robot axis.

Also triggering the continued rise in TSLA is the re-election of Donald Trump, who has appointed Tesla CEO Elon Musk as co-chair to lead the new Department of Government Efficiency (DOGE).

Although Musk will not be an official member of the president’s cabinet, the Trump administration’s deregulatory stance in favor of electric car makers has led to much optimism that it will benefit Tesla’s operations and expansion plans.

Based on Zacks Estimates, Tesla’s total sales are now expected to rise 3% in fiscal 2024 and are expected to expand another 17% in FY25 to $117.58 billion.

On the bottom line, annual earnings are expected to decline to $2.47 per share this year, compared to EPS of $3.12 in 2023. However, FY25 EPS is expected to increase, rising 32% to $3.26 per share.

Further supporting the rally in Tesla stock is that FY24 and FY25 EPS estimates are up 10% and 8%, respectively, over the past 60 days.

Based on the trend of positive earnings estimate revisions, Tesla stock currently has a Zacks Rank #1 (Strong Buy). Furthermore, the implied government support that Tesla will receive under the Trump administration suggests that TSLA remains a viable investment into 2025.

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