Tesla given Buy Rating TP $265 cited strong demand in updated Model Y and Model 3
$Tesla(TSLA.US$ $BYD COMPANY(01211.HK$ $XPeng(XPEV.US$ $NIO Inc(NIO.US$ The article reported that Stifel initiated coverage of the stock with a buy rating and a price target of $265, representing upside of 35% from the current share price of $195.55.
My Take: The analyst cited 3 reasons for the Overweight ratings:
1) The firm bases its price target on the expectation that the updated Model 3 and Model Y should see strong demand and return the company to growth.
2) Tesla's focus this year involves transitioning to its next-generation manufacturing system. The new process is designed to speed up production to make more vehicles at a more affordable price to the consumer.
3) Stifel expects Tesla to return to robust growth in 2025 and beyond. But the firm also sees increasing revenue contribution from Tesla's artificial intelligence (AI)-based self-driving car software, which would boost Tesla's revenue and profit margin, and therefore significantly increase the value of the business.
2) Tesla's focus this year involves transitioning to its next-generation manufacturing system. The new process is designed to speed up production to make more vehicles at a more affordable price to the consumer.
3) Stifel expects Tesla to return to robust growth in 2025 and beyond. But the firm also sees increasing revenue contribution from Tesla's artificial intelligence (AI)-based self-driving car software, which would boost Tesla's revenue and profit margin, and therefore significantly increase the value of the business.
History says the best time to bet on Tesla is when expectations are low. Opportunities in AI software and other new products may not be fully reflected in the stock's valuation. The stock should move higher when the business starts to see growing profits following the transition to the next-generation production system.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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