Wall Street analysts are divided on Tesla after the electric car company’s latest quarterly results. Tesla beat on both earnings and revenue for the fourth quarter. The company posted adjusted earnings of $1.19 per share, compared with expectations of $1.13 per share, according to Refinitiv estimates. Meanwhile, revenue came in at $24.32 billion, which exceeded forecasts of $24.16 billion. Tesla shares jumped more than 7% in Thursday’s premarket trading after CEO Elon Musk said the company could make 2 million cars this year. TSLA 1D mountain What’s more, Tesla shares soared, allaying investor fears of weaker growth at Tesla after the company recently issued a round of price cuts on its vehicles. While the move upset customers and caused prices for used Teslas to drop, they also supported demand for the vehicles. “So far in January, we’ve seen the strongest orders in our history. We’re currently seeing orders at almost twice the rate of production,” Musk said during a call with analysts. For Mark Delaney of Goldman Sachs, this was “the most important takeaway from the call”. The analyst reiterated a Buy rating on the company with a 12-month price target of $200. That means shares could be up nearly 40% by Wednesday’s close. “Importantly, Tesla commented that since it lowered prices, it has seen the strongest year-over-year orders in its history, with production running nearly 2X. While we believe this rate of orders may not sustain in light of the weak macroeconomic environment, would suggest that the company is tracking well over our 1.8 million delivery estimate,” Delaney wrote. Other analysts were more negative on the stock outlook, however, saying that Tesla’s automotive gross margin, which was the lowest figure in the last five quarters, foreshadowed trouble ahead. Tony Sacconaghi of Alliance Bernstein reiterated an underperform rating on Tesla, saying there was “something for the bulls and bears” in the automaker’s latest results and earnings call, adding that he remains “torn” on the company Is. While strong orders are promising, the analyst said auto gross margin was too weak to ignore. “Despite materially increasing our energy storage forecast, our fiscal year EPS decreases between $3.80 to $3.54 by a lower margin. China, where we believe further price reductions will be needed before the end of the year, Sacconaghi wrote. “We worry especially about what will happen in ’24, when Tesla will aim to sell 2.5 – 3M cars with a similar lineup, a much more saturated customer base, and a relatively modest contribution from Cybertruck. New low prices The offer may not come soon enough, but we won’t count on anyone before 2025,” he said. Other analysts had a more measured response. Citi’s Ite Micheli raised his price target to $146 from $137, roughly in line with where shares closed on Wednesday. Nevertheless, he maintained a neutral rating on the firm after the earnings and said the outlook is balanced from here. “Given the increased focus on the impact of recent price cuts on demand and gross margin, management’s comment will be of some relief, as it injects some much-needed visibility,” Micheli wrote Wednesday. That said, the quarter won’t settle all recent debates as Q4 margins softened, FCF missed, and strong order trends will need to be sustained beyond the initial uptrend. To that end, the 2023 delivery guide also has some Debate is likely to happen,” he said. Meanwhile, Bank of America’s John Murphy reiterated the neutral rating, saying that the operating and financial outlook for Tesla shares remains unchanged after the earnings, and that the stock is “fairly valued.” He raised his price target to $155 from $130. — CNBC’s Michael Bloom and Lora Kolodny contributed to this report.