Tesla continues to expand its dominance over legacy auto and other EV OEMs
Tesla wins by building the best EVs wrapped in innovative first principle manufacturing,
Some analyst and many sources of Main Stream Media have demeaning Tesla because they lowered their EV prices world wide. They say that Tesla cut prices because they have a demand problem and that the lowering of prices will hurt their margins. Now lets take a look and what Wall Street Analysts think about Tesla game plan.
CNBC panel discussion on Tesla profitability opportunities
“TipRanks knows who to trust: Based on 28 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $187.32 with a high forecast of $300.00 and a low forecast of $85.00. The average price target represents a 30.31% increase from the last price of $143.75.”
“Tesla’s price cuts are, all else equal, an adverse fundamental development vs. market expectations but we believe potentially far worse for the company’s EV competitors,” the analyst said. In an EV deflationary environment, Tesla’s strong balance sheet, cost/technology leadership and scale will be critical for solidifying its competitive advantage said Morgan Stanley's analyst Adam Jonas, who has a Tesla buy rating of $250.”
Analyst Forecasts
Morgan Stanley | Price Target: $250 | Stock Rating: Buy | Upside: 73.12% |
Mizuho Securities | Price Target: $250 | Stock Rating: Buy | Upside: 73.12% |
CFRA | Price Target: $210 | Stock Rating: Buy | Upside: 45.43% |
Goldman Sachs | Price Target: $200 | Stock Rating: Buy | Upside: 38:49 |
RBC Capitol | Price Target: $186 | Stock Rating: Buy | Upside: 28.80% |
“We believe Tesla’s new product launches will allow it to take advantage of this expanding market,” Jeff Windau of Edward Jones wrote in a note to investors. “In our opinion, the share price of Tesla does not reflect its long-term growth opportunities.”
Technical analysis of Tesla stock indicates a strong move upward that will continue
The chart master, Carter Worth, says Tesla stock should continue to go up.
Competing EV manufacturers and legacy OEMs Cant keep up with Tesla
“UBS Analyst said: Very few Chinese EV competitors are in the same cost territory as Tesla, we believe, whereas most OEMs will struggle to make profitable EVs at significantly lower price points. On top, Model 3 and Model Y prices now are at or below the price points of key ICE competing models (BMW X3, 3 series, etc.), so the addressable market is expanding fast.,, UBS also said: "that none of the global OEMs will be able to fully follow Tesla's pricing without dropping into loss-making territory for their competing EVs.”
Tesla Wins
It may be somewhat true that the margins for Tesla may suffer a bit, but Tesla has simply chosen short term pain in margins for long-term gain in worldwide vehicle sales market share. The Tesla margins will recover. The long game and greater volume of sales is more important to Tesla. That makes Tesla a winner!
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