Elon Musk's brain implant company Neuralink has approached one of the biggest U.S. neurosurgery centers as a potential clinical trials partner as it prepares to test its devices on humans once regulators allow for it, according to six people familiar with the matter.
Australian technology firm SafetyCulture on Monday said it has appointed Robyn Denholm, chair of electric vehicle maker Tesla Inc, as a director to its board.
Wall Street is abuzz with talk of generative artificial intelligence (AI), the technology behind viral chatbot ChatGPT. Generative AI turns prompts into novel text, images, and videos, and it promises to revolutionize countless industries. In fact, generative AI is already being
Tesla (
NASDAQ:TSLA
) shares have rallied this year after plunging in 2022. The
electric vehicle maker’s
stock is up over 54% year-to-date, fueled by the company’s
fourth-quarter results and improved sentiment about growth stocks. While several analysts remain bullish about Tesla, there are some who feel that persistent macro pressures could limit the upside potential from current levels.
Tesla Navigating Challenging Conditions
Tesla delivered better-than-expected fourth-quarter results despite supply chain disruptions in China. Overall, the company’s
revenue increased 51% to $81.5 billion in 2022, while net income more than doubled to $12.6 billion. Tesla addressed investors’ concerns about demand and assured that the company is well-equipped to navigate through short-term uncertainty, helped by its cost control measures.
During the Q4
earnings call held in January, CEO
Elon Musk stated that the company was seeing orders “at almost twice the rate of production.” Tesla’s deliveries increased 40% to 1.31 million in 2022. Production grew 47% to 1.37 million. The company expects to produce 1.8 million vehicles this year.
Tesla has been slashing prices aggressively to boost demand. It has ignited a price war in the EV space, which has become very competitive. Earlier this month,
Tesla cut prices on Model S and Model X to spur demand.
The company’s decision to slash prices seems to be fetching the desired results. According to the European Automobile Manufacturers' Association, registrations of Tesla EVs in the European Union
jumped almost 50% to 19,249 vehicles in February. Further, the company’s share of the “BEV [Battery EV]–fully electric vehicle” market increased to 19.8% in February 2023 compared to 18.5% in the prior-year quarter.
Based on a recent survey, UBS analyst
Patrick Hummel expects 26% global EV penetration in 2025 and 51% in 2030, compared to 12% in 2022.
“In a market that is no longer supply constrained, technology and cost leadership have become more important than ever, and we think Tesla is clearly best positioned to win as it fully controls all the mission-critical levers in-house,” said Hummel.
Hummel expects Tesla to “gap away further” in volume and profitability compared to its peers following the launch of Cybertruck this year and the expected introduction of its cost-efficient third-gen platform in 2025. He reiterated a Buy rating on Tesla with a price target of $220.
Unlike Hummel, not all analysts are bullish on Tesla. This month, analysts at KGI Securities, Berenberg Bank, and Wolfe Research downgraded Tesla to Hold from Buy. While Wolfe Research analyst
Rod Lache acknowledges Tesla’s “impressive cost trajectory,” he has turned “incrementally more concerned about macro challenges.”
Is Tesla a Buy, Hold, or Sell?
Wall Street is cautiously optimistic on Tesla, with a Moderate Buy consensus rating based on 20 Buys, 10 Holds, and three Sells. The average
TSLA stock price target of $212.89 suggests nearly 12% upside from current levels.
Conclusion
Tesla bulls continue to believe in the company’s ability to win more market share in the EV space and improve its profitability through cost cuts. However, some analysts are concerned about the impact of growing macro pressures. They fear that following a strong rally so far this year, the upside in Tesla shares might be limited over the near term due to a potential economic downturn.
Disclosure
In this week's video, I cover everything you need to know about news related to Tesla (NASDAQ: TSLA) during the week of March 20. Today's video will focus on Tesla's continued domination in Europe and China, why the competition struggles to keep up, and Ford's new financial repor
The electric vehicle (EV) sector went mainstream last year as new options entered the market in categories including cars, pickup trucks, and semi tractor trailers. And 2022 was an especially transformative year for EV leader Tesla (NASDAQ: TSLA).
Investors in Tesla Inc (Symbol: TSLA) saw new options begin trading today, for the December 2025 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 1001 days until expiration the newly trading contracts repr
Ford Motor Co plans to build up to 500,000 electric trucks a year at its BlueOval City complex under construction in western Tennessee, the automaker said on Friday.
Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit cha
Ford Motor Co plans to build up to 500,000 electric trucks a year at its BlueOval City complex under construction in western Tennessee, the automaker said on Friday.
The electric vehicle (EV) industry has been under intense pressure due to a combination of macroeconomic and industry-specific headwinds. Rising interest rates make it more expensive for consumers to finance car purchases, and higher EV investment by legacy automakers and new pla
Chinese battery giant CATL plans to start this year the mass production and delivery of batteries based on a new materials technology, M3P, which will perform better and cost less than nickel and cobalt-based ones, its chairman said.
South Korea's LG Energy Solution Ltd (LGES) said on Friday it would invest 7.2 trillion won ($5.58 billion) to build a battery factory in Arizona, reviving a project paused last year due to adverse economic conditions.