Tesla (TSLA) Stock Is a "Buy" as Elon Musk Prepares His Master Plan Part 3: Jefferies

Jefferies analyst Philippe Houchois is confident Tesla will maintain its leading position in the EV industry, even as the auto market is facing growing issues from companies. Houchois believes Elon Musk’s Master Plan Part 3 will play a key role in Tesla’s continued success.

“We are reducing estimates in our OEM coverage, but we are increasing them at Tesla, which is on a price increase more than offset by risks from volume and battery cost inflation. Compared to Tesla’s ability to grow physically With cash accumulating at a rapid pace, we look forward to revealing Elon Musk’s Master Plan Part 3,” Houchois said.

Houchois’ confidence in Tesla’s ongoing and future success stems from the EV automaker’s positive message during the recent auto conference at Jefferies. Analysts predict that Part 3 of Elon Musk’s master plan will go beyond “financing, warehousing and FSDs, as these will barely make a dent in the rapidly growing cash pile.”

The Jefferies analyst maintains a “buy” rating for TSLA, but has lowered its price target from $1,400 to $1,250. Taking into account the “risky macro and geopolitical environment for valuation,” Houchois lowered its price target.

Currently, companies are still grappling with the supply chain challenges that emerged when the global chip shortage began. Earlier this month, Elon Musk revealed that Tesla was seeing significant inflationary pressures in raw materials and logistics.

Jefferies noted that Tesla’s recent price hikes have eased some of the supply chain challenges. Tesla has increased the prices of its vehicles twice in the past few weeks.

However, Tesla is adapting well to supply chain issues, possibly because it has experience dealing with difficult challenges as a startup-turned-company. The company has shown that it is adept at assessing the situation and pivoting when necessary to continue delivering products despite growing issues beyond its control. Tesla also seems to be good at anticipating and preparing for the challenges of the future.

Tesla’s Gigafactory is a prime example of the company’s resilience. Tesla Giga Berlin will deliver its first batch of Model Y vehicles on March 22. Tesla Giga Texas will soon follow suit. Giga Shanghai, the factory driving Tesla’s international growth, is still expanding and aims to reach 1 million units per year by the end of 2022. The Fremont factory is still expanding.

Tesla didn’t even build Gigafactories. Later this year, Tesla is expected to announce the location of another Gigafactory.

The Teslarati team would appreciate hearing from you. If you have any suggestions, reach out to me [email protected] or via twitter @author_01001101,

Tesla (TSLA) Stock Is a “Buy” as Elon Musk Prepares His Master Plan Part 3: Jefferies






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