🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Tesla PT raised at Wells Fargo with Investor Day expectations high

Published 25/02/2023, 01:58 am
© Reuters.
TSLA
-

By Sam Boughedda

Wells Fargo analysts raised the firm's price target on Tesla (NASDAQ:TSLA) to $190 from $150 per share, maintaining an Equal Weight rating on the stock.

Analysts told investors in a research note that expectations for Tesla's upcoming Investor Day are high with the focus on delivery growth.

"Tesla will discuss its LT plan, capital allocation & most importantly, its Gen 3 platform," explain analysts. "While recent global price cuts have driven demand, TSLA likely needs Gen 3 to maintain its 50% delivery CAGR."

The analysts state that Tesla's Gen 3 model is expected to be $30,000, so the electric vehicle giant would cover 95% of U.S. price points.

"A $30K EV that is as profitable as a comparable ICE model likely drives more near-term momentum," they argue. "Therefore, credible profit/cost targets & launch timing are key."

"It is likely that TSLA announces a smaller Gen 3 priced at $30K, but the cost hurdles for a 20% GM EV are high requiring a >$11K reduction in BOM & >$2K in scale benefits," write analysts. "We estimate possible cost cut targets for Gen 3. E-Powertrain cuts are needed; the sole use of LFP, lower kWh & mass market optimization account for 42% of target. Cuts to the already lean interiors, body, & electronics are 43% with scale/warranty adding another ~15%."

Tesla shares are down almost 4% Friday at the time of writing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.