Tesla Receives PT Raise from Wells Fargo Amid High Investor Day Expect

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Analysts at Wells Fargo raised their price goal for Tesla shares by 27% to $190 from $150 per share. The firm has high expectations for the updates disclosed during Investor Day.

Analysts at Wells Fargo told investors in a research note that they’ve high expectations for the upcoming Tesla Investor Day. Of their opinion, the most important focus shall be on the expansion of supplies, as a consequence of the production of cars on a brand new platform, which can provide a major reduction in the value of EVs.

“Tesla will discuss its LT plan, capital allocation & most significantly, its Gen 3 platform,” explain analysts. “While recent global price cuts have driven demand, TSLA likely needs Gen 3 to take care of its 50% delivery CAGR.”

Analysts expect the brand new Tesla model, built on the third-generation platform, to cost $30,000. In line with them, this may allow the corporate to cover 95% of the value categories within the US, which can give the corporate a giant boost.

“A $30K EV that’s as profitable as a comparable ICE model likely drives more near-term momentum,” the firm wrote. “Due to this fact, credible profit/cost targets & launch timing are key.”

“It is probably going that TSLA publicizes a smaller Gen 3 priced at $30K, but the price hurdles for a 20% GM EV are high requiring a >$11K reduction in BOM & >$2K in scale advantages,” Wells Fargo wrote. “We estimate possible cost cut targets for Gen 3. E-Powertrain cuts are needed; the only real use of LFP, lower kWh & mass market optimization account for 42% of goal. Cuts to the already lean interiors, body, & electronics are 43% with scale/warranty adding one other ~15%,” analysts added.

© 2023, Eva Fox | Tesmanian. All rights reserved.


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This text is for informational purposes only. You need to not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this text constitutes a solicitation, suggestion, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to purchase or sell any securities or other financial instruments on this or in every other jurisdiction through which such solicitation or offer could be illegal under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (on the time of this text’s publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

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