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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.
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