Tesla Reports Record Quarterly Results; Shares Rise 1% After-Hours

Shares of electric vehicle maker Tesla (TSLA) gained 1% in extended trading hours on Monday after the company reported solid second-quarter 2021 results. California-based Tesla makes solar roof tiles, solar panels, battery energy storage and other renewable energy products.

Don't Miss our Black Friday Offers:

Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Adjusted earnings per share (EPS) skyrocketed 230% year-over-year to $1.45, beating analysts’ expectations of $0.96. Total revenue almost doubled year-over-year to $11.96 billion, marginally surpassing the Street’s estimates of $11.21 billion. (See Tesla stock chart on TipRanks)

The company said, “In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11% and exceeded $1 billion of GAAP net income for the first time in our history.”

On July 20, Morgan Stanley analyst Adam Jonas reiterated a Buy rating on the stock with a price target of $900 (37% upside potential). The analyst said, “It is possible that the value of Tesla’s recurring software revenue may exceed the value of its hardware business. The company will roll out more services that can steer coverage away from auto-analysts towards tech/platform analysts. This transition may help drive a further re-rating of the shares over time.”

Overall, the stock has a Moderate Buy consensus based on 10 Buys, 5 Holds and 3 Sells. The average Tesla price target of $740.61 implies a 12.6% upside potential. The company’s shares have gained 113.6% over the past year.

According to TipRanks’ Smart Score rating system, Tesla scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.