Morgan Stanley sees good prospects for Tesla
2023.02.23 15:00
Morgan Stanley sees good prospects for Tesla
By Ray Johnson
Budrigannews.com – In their Tesla (NASDAQ) report, analysts at Morgan Stanley stated: According to their Investor Day preview, they anticipate Tesla presenting a collection of technologies needed for the widespread adoption of EVs at significantly lower prices.
This is a “critical component of Master Plan 3,” according to the analysts, who have given the stock an Overweight rating and set a $220 price target for it. Elon Musk stated earlier this month that the plan is the “path to a fully sustainable energy future for Earth” and will be presented on March 1.
The analysts asserted, “It is very possible that Tesla’s March 1st investor day may have greater significance than Tesla itself on the market’s perception (and ultimately, valuation) of Tesla’s EV competitors.”
Regarding Tesla’s recent price cuts, analysts stated that Elon Musk has consistently emphasized the company’s objective of becoming a mass-market manufacturer by introducing the lower price points required to have a significant impact on the global auto installed base’s carbon footprint.
However, they believe that Tesla will need to successfully reduce the average price of their products and, ideally, cut costs in order to maintain their leading margins in the industry in order for this to be possible.
“Tesla will need to make significant progress from their current COGS per vehicle ($39k in FY22) in order to achieve their stated goal of a competitive offering at a price point of $25,000.” They added, “A redesigned Model 3 interior (Project Highland) and the subsequent learnings may be a step in the right direction.”
