From the get-go, Tesla’s (TSLA) mission has been to stand out from the crowd; throughout the years, it has continued to do so in various ways. For one, obviously, it is a pioneer in the field of electric vehicles and a leader in electric vehicle battery technology. There are also few, if any, CEOs as magnetic as Elon Musk.
Other OEMs are also constantly playing catch up with Tesla’s innovations, said Canaccord analyst Jed Dorsheimer following last week’s launch of Tesla’s fastest vehicle-to-date, the Model S Plaid.
“While others are establishing battery supply chains, Tesla is innovating past the battery,” the 5-star analyst claimed. “First demonstrated with the inaugural use of SiC in their traction inverter, and now with electric motor design. This is a product of Tesla’s culture, and places them further ahead on the innovation curve compared to legacy OEM competitors.”
This “system level approach” has now turned its gaze toward motors. To allow for improved strength to weight ratio required to stop the motor from pulling itself apart at 20,000 rpm, the new motor is carbon wrapped, amounting to an industry first. And to provide a more efficient electromagnetic field and sustain tighter gaps at higher rpm, the company has designed and constructed a machine that can wind the copper rotors at much higher tension. Dorsheimer expects this will lead to “industry-wide improvements in motor design.”
However, while Dorsheimer evidently thinks highly of Tesla, the fact it will now not offer the Model S Plaid Plus - rumored to be the first model to boast the new 4680 cell design - suggests the new cell format “isn’t ready for production just yet, and cell production capacity constraints for energy storage products like Powerwall remain.”
Throw into the mix inflation-related macro, near-term uncertainty and Fed policy “causing a sector rotation out of growth and into value names,” and Dorsheimer is driven to reduce his Tesla price target from $974 to $812. There’s still room for gains of ~35% from current levels, while the analyst’s rating stays a Buy. (To watch Dorsheimer’s track record, click here)
Overall, Tesla remains a polarizing name on Wall Street, reflected in a wide array of opinions from the experts. Based on 9 Buys, 6 Holds and 7 Sells, the analyst consensus rates the stock a Hold. The forecast is for 12-month gains of a modest 3.5%, given the average price target currently stands at $620.70. (See Tesla stock analysis on TipRanks)
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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.
The global Electric Vehicle manufacturer Tesla, Inc. (TSLA) seems to have nearly sold out the Model Y Long Range variant in Q3 based on recent registration figures, as per Teslarati. Shares rose 1.3% to close at $617.69 on June 14.
The earliest possible delivery date for the Model Y Long Range variant has been extended to September, which is the end of the company’s third quarter of FY2021.
Tesla’s all-electric crossover Model Y has already proven to be more popular than the all-electric Model 3 sedan in markets such as China and California. (See Tesla stock analysis on TipRanks)
The overwhelming demand for the Model Y has led to a price hike of $3,500 so far this year, despite the company cutting the cost of the car considerably in February.
Tesla has also made several alterations to the Model Y this year, including removing a lumbar-support option in the passenger’s seat and the removal of radar equipment in both the Model Y and Model 3, as a means to progress towards the company’s Full Self-Driving ambitions.
During the company’s Q1 2021 Earnings Call, CEO Elon Musk said, “When it comes to Model Y, we think Model Y will be the best-selling car or vehicle of any kind in the world and probably next year… I’d say more likely than not, that in 2022, Model Y is the best-selling car or truck of any kind in the world.”
With the company already selling out of its Q2 production volumes in early May, Tesla has been on a rampage, trying to scale up manufacturing capabilities for all of its vehicles, with Model Y being the prime focus as it expands geographically.
Yesterday, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on the stock with a price target of $820, implying 32.8% upside potential to current levels.
In his latest Global EV report, Rakesh stated, “We believe TSLA remains the battery electric vehicle (BEV) market share leader globally, with ~24% market share…While we expect to see emerging competition for TSLA in the coming quarters with the VW ID.4, Mercedes EQS, and Mustang Mach-E, (among others), we would note the complexity and investment required to successfully ramp and integrate battery technology and new EV platforms.”
The stock has a Hold consensus rating based on 9 Buys, 6 Holds, and 7 Sells. The TSLA average analyst price target of $620.70 implies that shares are almost fully valued at current levels.
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