Tesla’s Investor Day will help the stock proceed to rise and re-rate higher, Deutsche Bank says. The firm raises its price goal on TSLA to $250 per share.
Tesla will hold an Investor Day on March 1, 2023, at Giga Texas. Analysts at Deutsche Bank consider that this development could help the stock proceed to enhance its rankings. Given the data that might potentially be revealed through the event, the firm raised its share price goal by 13.6%, from $220 to $250.
Deutsche Bank is expecting Tesla to unveil Master Plan 3 announced by Elon Musk and present the predominant drivers of its long-term growth strategy on the event. This may likely include the corporate’s third generation vehicle platform, which can likely support many future vehicles and segments at a lower cost. The firm’s analysts also expect updates on FSD V11 software, HW4 hardware, Cybertruck/Semi production, Model 3 Highland project updates, and expansion of the energy storage business. As well as, it is anticipated to listen to information concerning the role of proprietary battery technologies, capability expansion, and raw material procurement activities.
Deutsche Bank says a very powerful for Tesla stock to rise may very well be:
- The lower cost trajectory of the next-gen platform (potentially targeting $20k in COGS/vehicle) and efficiency in capital and output, with details on how the corporate plans to realize the anticipated scale and value;
- Specific vehicles and segment launches based on next-gen platform and their timelines (Tesla has mentioned SOP as early because the second half of 2024);
- FSD V11 and Hardware 4 rollout plans that might support and boost the autonomous capabilities of the next-gen platform and potentially support robotaxis;
- Capital allocation framework with share buybacks.
“All in, we consider that increased clarity across the long-term trajectory for Tesla’s global operations, volume growth, and particularly scale and value of Tesla’s next-generation models, could reinforce the bull case for the stock,” the analysts conclude.
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