From Torque News.
Tesla stock put in a strong performance following fourth-quarter earnings. Plus, adding 70 percent in just four weeks is a word. So what’s next after the 70 percent move and where could new impetus come from?
Tesla’s fourth quarter numbers were broadly in line with expectations.
According to a message from Tesla to SEC, the company intends to invest around 7 to 9 billion dollars in expanding production in 2024 and 2025.
The total is around one billion more than Tesla’s previous figures.
The reason for this could be the construction of a new Tesla gigafactory in Mexico.
However, will that be enough to justify a market cap of $550 billion, a price-to-sales ratio of 5.5 and a 2023 P/E of 42?
Morgan Stanley analysts, led by Adam Jonas, again ranked Tesla as a "top pick" with a price target of $220 in a Jan. 26 note.
But Jonas warned that Tesla could test "new lows" in the first half of the year before breaching the $220 price target within 12 months.
Goldman Sachs wrote on Thursday that Tesla’s Q4 results point to more gains for the electric-car maker.
"We continue to believe that the company is well positioned for long-term growth given its leadership position both in terms of cost structure and as a full solution provider for clean mobility," Goldman said. Their Tesla share price target is $200.
Garrett Nelson of CFRA Research, predicts Tesla stock will have a "strong upleg" in 2023." He say "the risk/reward trade-off is extremely compelling at current levels."Where could Tesla’s new impetus come from?
Investors should keep an eye on Tesla Investor Day on March 1st. At this event, the new vehicle platform from Tesla will most likely be presented.
A small Tesla car in the price segment between 25,000 and 30,000 dollars could then be built on this. An affordable Tesla could attract new groups of buyers and double the sales volume.
In terms of margins, Tesla should weather the price-drop phase far better than its peers given its cost structure, thinks Jochen Kauper of Der Aktion’a’r.
In China and the USA Tesla orders have skyrocketed in recent weeks. In any case, from a technical point of view, the Tesla stock has recovered significantly.
"In the short term, however, the stock is clearly overheated after the strong run," Kauper thinks. According to him "a consolidation is overdue." The Investors’ Day on March 1 could provide new impetus for Tesla.
Disclaimer: This report was prepared by Armen Hareyan of Torque News who isn’t a Tesla stockholder. Please, let us know where do you think Tesla stock will go in the next 3 months.
This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.
Der Aktionar https://www.deraktionaer.de/artikel/deraktionaerplus/tesla-wie-gehts-nach-dem-70-prozent-move-weiter-das-sagen-die-analysten-20325870.html