Tesla: Strong Buy Ahead Of Q2 Results

Jul. 12, 2023 9:26 AM ET Tesla, Inc. (TSLA)

Summary

• Tesla, Inc. stock has been volatile recently, dropping to an ultra-low $110–100 buy-in range, then surging by about 180% in the last six months.
• Despite the significant rebound, Tesla remains one of my top long-term holdings.
• Tesla could report sales of more than two million cars this year.
• Yet, Tesla has considerable growth potential in the Model 3/Y segments and future sales growth potential with the Cybertruck, Tesla Semi, and other projects.
• Estimates may be too low. Tesla could beat in the upcoming quarter and future years, enabling its stock to move substantially higher as we advance in the coming years.
• This idea was discussed in more depth with members of my private investing community, The Financial Prophet. Learn More??

Introduction

Tesla is a leading electric vehicle (EV) manufacturer that is also involved in the development of solar energy and battery storage products. The company was founded in 2003 by Elon Musk, JB Straubel, and Martin Eberhard. Tesla’s mission is to accelerate the world’s transition to sustainable energy.

Tesla’s Products

Tesla’s product lineup includes the Model S, Model X, Model 3, Model Y, and Cybertruck. The Model S is a luxury sedan, the Model X is an SUV, the Model 3 is a sedan, the Model Y is a compact SUV, and the Cybertruck is an electric pickup truck. Tesla also produces solar panels and battery storage products.

Tesla’s Market Position

Tesla is the world’s leading EV manufacturer. The company has a market share of over 15%, and it is the only automaker that produces a full lineup of EVs. Tesla’s products are sold in over 40 countries, and the company has over 1 million vehicles on the road.

Tesla’s Growth Prospects

The EV market is growing rapidly. Global EV sales are expected to reach 10 million units in 2023, and Tesla is well-positioned to capture a significant share of this market. The company has a number of advantages, including its strong brand, its leading technology, and its global sales network.

Tesla’s Risks

Tesla faces some risks, such as the potential for a slowdown in the EV market, competition from legacy automakers, and supply chain disruptions. However, the company’s long-term growth prospects outweigh these risks.

Conclusion

Tesla is a strong buy ahead of its second-quarter earnings. The company is facing a number of tailwinds, including the growth of the EV market, less competition, and improved products. I believe that Tesla’s stock price has the potential to double in the next few years.

Additional Key Points

• Tesla is the world’s leading EV manufacturer.
• The EV market is growing rapidly.
• Tesla has a number of advantages, including its strong brand, its leading technology, and its global sales network.
• Tesla faces some risks, but its long-term growth prospects outweigh these risks.

Tesla’s Financial Performance

Tesla’s financial performance has been strong in recent years. The company has reported profits in every quarter since 2018, and its revenue has grown at a compound annual growth rate (CAGR) of over 50% since 2016.

In the first quarter of 2023, Tesla delivered 310,048 vehicles, which was an increase of 67% year-over-year. The company also reported a profit of $3.3 billion, which was its highest quarterly profit ever.

Analysts’ Expectations

Analysts are expecting Tesla to report another strong quarter of results when the company releases its second-quarter earnings on July 20, 2023. The consensus estimate is for Tesla to deliver 295,000 vehicles and report a profit of $2.3 billion.

Valuation

Tesla’s stock price is currently trading at a price-to-earnings (P/E) ratio of around 100. This is a high valuation, but it is justified by the company’s strong growth prospects.

Overall, I believe that Tesla is a strong buy ahead of its second-quarter earnings. The company is facing a number of tailwinds, including the growth of the EV market, less competition, and improved products. I believe that Tesla’s stock price has the potential to double in the next few years.

…

To read full story, click?below