Tesla’s Stock Upgraded On “Strong Competitive Advantage”

[RV_]

For those invested in Tesla this sure makes the upcoming 3-1 split of the stock in August more interesting. I have no clue how that will play out but I am holding unless it goes to $2000 a share like it did just before the 5-1 split in 2020. I think this split is anyone's guess as far as how it plays out. However we will see soon enough. Good info.

Excerpt:

"RBC Capital’s Joseph Spak upgraded Tesla’s stock to outperform, saying that the electric automaker has a “more favorable near-term setup,” according to MarketWatch. Spak also noted that Tesla’s vertically integrated model will give it a competitive advantage in the mid- and near-term.

For the second quarter, most analysts expect Tesla to deliver around 279,000 units, says Spak, with industry buy-side estimates as low as 250,000 units. Spak is forecasting Tesla to deliver 249,000 units, with room for an upside to the estimate if Tesla’s Gigafactory Shanghai are fully operational again as detailed in some reports.

In addition to deliveries, Spak says Tesla could expect to see a margin upside in the second quarter and in the back half of the year, despite expectations for delivery decreases from the first to the second quarter. With price increases, Tesla could see up to a 3 percent boost in average selling prices, “given the pricing actions Tesla has taken a while back but not been able to realize as they have been working through their backlog.”

Demand for Tesla’s vehicles is still high, though. At the time of writing, U.S. Tesla orders of the Model 3 RWD and AWD Long Range variants have an estimated delivery of September to December, while the Model Y Long Range variant has an estimated delivery of January to April of 2023. Both the Model 3 and Model Y Performance models come much sooner, with delivery estimates of June through August and August through October, respectively.

Tesla’s supply chain deals may have helped mitigate the effects of inflation hitting raw materials, with Spak emphasizing this as the part of the key to its advantageous industry positioning.

“While TSLA is fairly secretive about the deals they have cut for supply of raw materials, in talking to contacts we believe they have done more than other OEMs,” said Spak. “The company’s early focus on vertical integration (not just batteries/raw materials but also motors, semis, software) is likely to pay off.”

Source:

https://cleantechnica.com/2022/06/25/teslas-stock-upgraded-on-strong-competitive-advantage/