Tesla CEO Elon Musk has not seen a corresponding increase in earnings per share (EPS) revisions since Donald Trump’s victory in the Presidential elections. As of Friday, analysts’ adjusted EPS estimates for FY2025 have only increased by 1.6%, despite the stock price surging +51% year-to-date.
Gary Black, managing partner at The Future Fund LLC and a Tesla bull, attributes the stock price growth to a rise in P/E (price-to-earnings) ratio, which has expanded from 77x before the election to 114x today. However, Black remains cautious, saying that a sustained expansion in EPS should be reflected in the stock’s performance.
Black is optimistic about Tesla’s prospects, particularly if the company secures robotaxi deployment permits or licenses its full self-driving software from other automakers. He expects these developments could lead to an acceleration in earnings growth next year.
Source: https://www.benzinga.com/24/12/42377001/analyst-says-he-is-very-bullish-but-cautious-about-teslas-stock-rally-notes-eps-revisions-have-not-kept-pace-with-stock-price-since-trumps-victory