Tesla's Stock Could Rise By Up To $24 If EV Giant's China FSD Rollout Succeeds, Says Fund Manager: 'Much Depends On Whether...'
Portfolio Pulse from Shanthi Rexaline
Tesla Inc.'s stock could see a significant rise if its Full Self-Driving (FSD) software rollout in China is successful, according to Future Fund's Gary Black. The potential increase in Tesla's valuation hinges on whether Tesla sells FSD solely on its vehicles or also secures licensing deals with other Chinese EV makers, and the adoption rate of FSD among Tesla owners in China. Black estimates a 10% adoption rate could add 4 cents to EPS, potentially reaching 48 cents per share if the adoption rate hits 30%, translating to an incremental valuation of up to $24 per share. However, competition from Baidu's Apollo Go and regulatory challenges could impact Tesla's success in the Chinese market. Analyst opinions on the potential impact of FSD in China vary, with some projecting significant revenue and earnings growth for Tesla.
May 01, 2024 | 8:42 am
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Tesla's potential FSD rollout in China could significantly boost its stock price, with estimates suggesting an incremental valuation of up to $24 per share based on adoption rates and licensing deals.
The potential for Tesla's FSD rollout in China to boost its stock price is based on several factors: the adoption rate of FSD among Tesla owners in China, the possibility of licensing deals with other Chinese EV makers, and the overall impact on Tesla's earnings per share. Gary Black's analysis suggests a significant valuation increase if these factors align favorably. However, competition from companies like Baidu and regulatory challenges could impact the success of Tesla's FSD in China, introducing some uncertainty into this analysis.
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