Shares of Tesla (TSLA) moved higher on Thursday thanks to several positive revelations from the EV maker in its third-quarter report.

From a third-quarter earnings beat and improving margins to improved growth prospects, low-cost EV updates and the rollout of robotaxi, there’s plenty for analysts to chew on for a company whose shares, even including today’s big move, are down this year only 2% have risen.

Bank of America’s John Murphy raised his price target thanks to Tesla’s strong quarter.

“We are raising our EPS estimates slightly due to improved gross margin in 3Q24 due to lower (commodity costs), Cybertruck ramp, fulfillment/cost savings, regular credits and higher volume,” Murphy wrote in a note published Thursday morning. .

Murphy was pleased with strong gross margins in the automotive sector, with Energy and Services (where Tesla sees sales doubling by 2025) exceeding expectations. As a result, Murphy raised his price target from $255 to $265 and maintained the company’s Buy rating.

Looking ahead, Murphy and BofA see a “well-positioned” 2025, with a “second wave of growth” on the horizon for Tesla.

“The end result (from the positive earnings commentary) was that Tesla is gearing up for the next wave of growth,” Murphy said. “(M)anagement expects volumes to increase substantially by 20-30% by 2025. This radical change will likely be fueled by the expected start of production of a more affordable vehicle in the first half of 2025 (more likely in the 2nd half of 2025) and the Cybercab.”

Murphy also noted that Tesla saw an increase in adoption of full self-driving (FSD) following the October 10 Robotaxi event and positive developments with the 4680 battery, which he sees as “the most competitive battery in the US” in terms of costs. level.

Morgan Stanley’s Adam Jonas drew on CEO Elon Musk’s prediction that Tesla’s volume growth could reach 20% to 30% by 2025, which Musk labeled a “best bet.”

Musk’s goal “clearly depends on the company’s ability to improve affordability through the introduction of lower-cost (next-gen) models, financing offers and enhanced features,” Jonas wrote in a letter to investors.

Morgan Stanley and Jonas now forecast annual growth of 14% (2.07mm units) through 2025, taking the expected fourth quarter delivery total and annualizing it, which equates to approximately 510,000 to 520,000 units delivered in the fourth quarter.

Jonas and the team at Morgan Stanley view Tesla’s quarter as one in which investors focused on lowering vehicle costs and increasing auto industry profitability, rather than trying to counter Tesla’s shift to AI and other ventures appreciate. Tesla remains a “top pick” for Morgan Stanley, with a price target of $310.

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Deutsche Bank’s Edison Yu called third-quarter margins “impressive” in both the auto and energy sectors and saw deliveries rise 11% sequentially in the fourth quarter, which would be a huge quarter-over-quarter move.

Like other analysts, Musk’s forecast volume growth of 20% to 30% was “materially above our/consensus expectations,” with the cheaper EV supporting that growth with a launch in the first half of 2025. That news combined with increasing information about The testing of cybercab and robotaxi ‘fueled more discussion in the future’ about the merits of this industry.

“Our view remains that Tesla is well positioned as a technology platform to leverage end-to-end AI to gain a leadership position in autonomous driving and humanoid robotics,” Yu wrote, giving the Buy rating and price target of $295.

One of the most optimistic Tesla analysts in the world, Dan Ives, was very impressed with Tesla’s quarter, which he called an “early Christmas present” for investors.

“I think it’s margins, margins, margins,” Ives told Yahoo Finance, citing that as the main driver behind Tesla’s monstrous stock price today. “Look at their cost of goods, their ability to produce cars is ultimately down 30% to 40%, and could be down another 20%, 30% as you look into next year… What we’ve seen in the margins, the renaissance of I think growth is now heading towards 2025.”

Ives says the margin story merges with Tesla’s AI and autonomous offerings, as well as other growth drivers that will ultimately lead to a market cap of more than a trillion dollars.

“We could be in a Cybercab within the next two to three years, so we’re not talking about something that will happen in five to 10 years. This is something that will become a reality in the coming years,” he said.

Ives added: “This will be the next phase of growth, autonomous FSD, AI, but the bottom line is you need the deliveries, you need the margins. They check every box.”

Ives was deeply impressed by the earnings conference call, claiming it was Musk and Tesla’s best in several years.

Ives and Wedbush maintained their Tesla Outperform rating and their $300 price target.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him X and on Instagram.

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