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Tesla's shares upgraded on China's eco boost. Shares could extend the charge. Musk headlines Milken conference
Morgan Stanley upgraded Tesla $Tesla (TSLA.US)$ with a $310 price target, Piper Sandler & Co with a $205 Tesla $Tesla (TSLA.US)$ target, Cantor Fitzgerald with a $230.00 $Tesla (TSLA.US)$ target on Friday May 3, as Elon Musk again slashed company costs. Investment banks are viewing China's new policies including a new EV policy as a tailwind. All this comes at a time when China gave the nod for FSD and Tesla's shares seem bullish from a technical perspective. Tesla hype could also build this week as Elon Musk headlines the 24th Milken conference alongside Argentina's president.
Musk is now planning to expand the EV charging stations at a slower pace after laying off the 500-member team responsible for installing charging stations. This caught competitors, suppliers and employees off guard, which reverses his aggressive push to build electric vehicle chargers in the US, a major priority of the Biden administration. These jobs cuts are in addition to the more than 10% staff cut ordered in mid-April.
Charging stations concerns seems overblown
For some, Tesla slashing its supercharger team raised doubts about if the number of public chargers would grow fast enough to keep pace with EV sales. But not everyone was concerned. Government subsidies and private capital are fueling a surge in charger construction that does not depend on Tesla: The number of public fast chargers in the United States increased by nearly 11,000, or about 36 percent, from April 2023 to April 2024.
Job cuts and EV charger concerns offset by China's EV push and FSD in China
China will adopt more preferential fiscal and tax policies to boost electric and other new-energy vehicle sales in the domestic market to replace old ones, according to a statement from the National Development and Reform Commission.
China's ruling Communist Party vowed to implement prudent monetary and proactive fiscal policy to support the economy so it can hit its 5% GDP goal. It also pledged efforts to help the troubled property market and hinted at a willingness to cut rates.
Tesla's AI-driven Full Self-Driving (FSD) is valued at $117 a share (today) alone. And will be a long-term game changer
China's new policies have been viewed as positive for EV spending. Plus Tesla tentatively cleared hurdles to roll out self-driving in Chinaafter CEO Elon Musk's surprise trip to Beijing. So the fundamental shift seems to be in Tesla's favour. Perhaps if you take a 12 moonth view. As I wrote in my recent note, Bloomberg values Tesla's AI-driven Full Self-Driving (FSD) business at $117 a share alone (today) and sees FSD accounting for 31% of revenue by 2040.
The technical indicators seem supportive of a rally
Tesla $Tesla (TSLA.US)$ shares are probably going to head higher from here, from a technical perspective. It seems the last time the MACD was at this level, the last three times its shares rallied rising 26% on average.
This week Elon Musk headlines the 24th Milken conference alongside Argentina's president
Elon Musk will be alongside Javier Milei, Argentina's new president, as the headlines for this week's Milken Institute Global Conference, the annual Beverly Hills conferences that tackles the world's most pressing problems with a dash of celebrity and Hollywood.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Jessica Amir
Moomoo Official Market Strategist
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Seen/heard on Fox News Business, ABC, SBS, Reuters wires.
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ZnWC : Thanks for the comprehensive coverage on Tesla. Looking forward to your live sharing on 8 May.
Moomoo AU :The AI Boom: Is it too late to get in?
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Maniac Fool : Thanks for the comprehensive analysis
🫶
Mr Pistachio : 'Experts' have spoken.Same data yet wide varying projections .Where is Paul the Octopus?
jimmy the trader : Thanks
Dramericanjesus : Lol! it's as if Morgan Stanley needs that crap pile to stay up or else they will lose a lot of money.
Maxxdog : hah, shorts were down 2.6 billion last week, love that part of infinite loss
