Tesla: Back To The Future

Jul. 05, 2023 1:08 PM ET

Tesla, Inc. (TSLA)

Poonam A. Arora

2.67K?Followers

Summary

• Tesla, Inc. is expected to encounter unprecedented competition during 2025/2026.
• However, armed by revamped current models, the Cybertruck, and two new models, Tesla will be tough to unseat.
• Profit margins are bound to rebound as economies of scale materialize on dramatically higher production volumes.
• Based on our 10-year discounted cash flow analysis, we arrive at an updated Price Target of $492/share. Reiterate Buy Rating on Tesla stock.

Investment Thesis

The rate of growth of the Electric Vehicle (EV) industry has accelerated significantly over recent quarters. The Environmental Protection Agency (EPA) has outlined a mandate that by 2032, EVs are likely to represent between 64% and 67% of the automobile industry. Large automobile manufacturers are shifting majority?fractions of their capital expenditures to their EV businesses. EV production figures for the next two to three years have been announced.

...

Get the full story, click below