According to NYC Streets Blog, Tesla, Inc. (NASDAQ:TSLA) has received a $12.4 million contract from New York’s Department of Citywide Administrative Services (DCAS) for 250 units of Tesla Model 3 vehicles. The department plans to purchase the EVs over the next five years.
The New York Police Department (NYPD) is likely to pay $49,000 for each EV, compared to $35,000 to $58,000 for normal squad cars and SUVs.
NYPD said, “DCAS ensures that products and services purchased to support the city’s long-term strategic and environmental goals at the lowest cost and meeting the highest professional standards.”
Tesla was trading 0.4% up, at the time of writing, in the pre-market session on Thursday.
Analyst RatingsOverall, TSLA stock has a Moderate Buy consensus rating based on 14 Buys, 8 Holds and 5 Sells. The average Tesla stock prediction of $1,016.68 implies 6.4% downside potential. Shares have gained 56.3% over the past year.
Website TrafficTipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.
According to the tool, compared to the previous year, Tesla’s website traffic registered a 1.2% rise in global visits in November. Moreover, the website traffic has increased 1.7% year-to-date against the same period last year.
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On Wall Street, opinions on Tesla (TSLA) run the gamut from one extreme to the other. The bears will point to an unrealistic valuation, the skeptics will highlight the inroads made by the increasing number of challengers, but the bulls also have plenty of reasons to remain sanguine.
And if you want the bull case laid out succinctly, Argus analyst Bill Selesky does a pretty good job of it. So, let’s take a look at why the analyst paints a rosy picture regarding the outlook for Musk and Co.
First off, Selesky points out that despite the growing competition, Tesla is still the “undisputed leader in the electric vehicle (EV) industry.” That’s not just hyperbole; the company ranked first in EV sales in 2019 and 2020. Selesky also thinks Tesla has a “distinct competitive advantage” via its industry-leading technology. Furthermore, at least for now, Tesla’s brand recognition is “unparalleled.”
The company’s latest quarterly report – for 3Q21 - was another blow to the bears with the results outpacing the Street’s expectations and based on record deliveries. And this took place in an environment impacted by global shortages of microprocessor chips and raw materials. Revenue, profit, and margins all continued to push higher and vehicle sales in China recovered from a recent lull; all are reasons why Selesky calls the performance “exceptional.” Selesky anticipates more of the same in 2022, which should set the stage for “significant profit acceleration.”
There’s also another, less talked about, ace up Tesla’s sleeve. The company recently said it will open its Supercharger Network to other non-Tesla vehicles. This is a “brilliant strategy,” says the analyst. “Tesla not only has the largest fast-charging network in the world, which would benefit any EV owner, but it would also generate a new and potentially immense revenue stream in the years ahead by charging non-Tesla EV owners a fee for the use of a fast-charging Tesla Supercharger,” Selesky explained.
Lastly, removing an overhang on the stock, with around 10% of his ownership stake now sold, it looks like CEO Elon Musk has completed his Tesla stock sale.
In line with his optimistic approach, Selesky rates TSLA shares a Buy, while boosting his price target to $1,313 (from $1,010). Should this target be met, a twelve-month gain of 20% could be in store. (To watch Selesky’s track record, click here)
Looking at the consensus breakdown, TSLA stock’s Moderate Buy rating is based on 14 Buys, 8 Holds and 5 Sells. However, unlike Selesky, most think the shares are due a slight pullback; going by the $1,016.68 average target, the stock will lose 7% of its value over the coming months. (See Tesla stock analysis on TipRanks)
To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.