Not Cybertruck, But This EV Is Ray Of Hope For Tesla's Continued Success, Says Analyst
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (TSLA) is facing challenges with demand outlook and margin impacts from price cuts. Analyst Pierre Ferragu from New Street Research emphasizes the importance of the Model 2 for Tesla's future success, predicting it will help maintain a 30% auto gross margin and address 80% of the car market. The Model 2 is expected to be cheaper to manufacture than the Model 3 and could significantly boost Tesla's revenues by 2030. Despite the hype around the Cybertruck, concerns about its ramp-up have been raised by CEO Elon Musk. Tesla's stock rose 6.12% to close at $237.41 on Tuesday.
November 15, 2023 | 9:10 am
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POSITIVE IMPACT
Tesla's Model 2 is seen as vital for the company's success, with the potential to maintain strong margins and capture a large market share, which could positively impact Tesla's financial performance and stock price.
The article emphasizes the Model 2's potential to maintain a 30% auto gross margin and its affordability, which could lead to significant revenue growth for Tesla. This positive outlook from analysts, along with the recent stock price increase, suggests a likely short-term positive impact on TSLA's stock.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100