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

Impressively better than the broader indices and many of its automotive competitors such as General Motors And ford, Tesla Shares gained +25% in December and are up over 75% year-to-date.

Investors may be wondering whether they should chase the rise in the electric market leader’s shares and whether Tesla should have a place in their portfolio as the new year approaches.

The reason investor sentiment toward Tesla is high is that many analysts remain optimistic about the company’s long-term initiatives. This includes expanding full self-driving (FSD) or autonomous vehicle production in its electric vehicle fleet as well as the planned introduction of robotaxis.

The ongoing rise in TSLA is also triggered by the re-election of Donald Trump, who appointed Tesla CEO Elon Musk as co-head of the new Department of Government Efficiency (DOGE).

While Musk will not be an official member of the president’s Cabinet, the Trump administration’s deregulation stance in favor of electric vehicle manufacturers has led to great optimism about the benefits for Tesla’s operations and expansion plans.

Based on Zacks estimates, Tesla’s total revenue is expected to rise 3% in FY2024 and another 17% in FY25 to $117.58 billion.

The bottom line is that full-year earnings are expected to fall to $2.47 per share this year, compared to earnings per share of $3.12 in 2023. However, earnings per share in FY25 will decline expected to rebound and rise 32% to $3.26 per share.

Further evidence of Tesla stock’s rally is that its FY24 and FY25 EPS estimates have risen 10% and 8%, respectively, over the past 60 days.

Based on the trend of positive earnings estimate revisions, Tesla stock currently carries a Zacks Rank #1 (Strong Buy). Additionally, the implicit government support that Tesla will receive under the Trump administration suggests that TSLA should remain a viable investment through 2025.

Why haven’t you checked out Zacks’ top stocks?

Since 2000, our best stock-picking strategies have wiped out the S&P’s average gain of +7.0 per year. Amazingly, they rose with average profits of +44.9%, +48.4% And +55.2% per year.

Today you can access their live tips for free and without obligation.

See shares free >>

Media contact

Zacks Investment Research

800-767-3771 ext 9339

The story continues