Tesla (NASDAQ:TSLA) is set to host their highly anticipated Investor Day next Wednesday, March 1st.[0] Investor expectations are high as the event is expected to reveal the company’s “Master Plan 3” and a new, lower-cost third generation vehicle platform. Ahead of the event, the stock is down 3.9% to $194.20 on Friday, yet has gained over 80% year-to-date in 2023.[1]
Morgan Stanley analysts expect Tesla to announce a suite of technologies that could enable the company to foster the mass adoption of electric vehicles.[2] The electric vehicle manufacturer must create attractive electric vehicles at more affordable prices.[3] According to the analysts, the investment community may be underestimating the obsolescence curves underlying much of today’s EV and battery technology in production today.[2]
Emmanuel Rosner of Deutsche Bank raised his price target for Tesla (NASDAQ: TSLA) shares to $250, an increase from $220, based on information that was shared at the company’s Investor Day, particularly the unveiling of the third edition of the Tesla Master Plan.[4]
Tesla’s aim has always been for the company to become a mass-market manufacturer (whilst also reducing the auto industry’s carbon footprint). To do this, they must both offer lower prices whilst at the same reduce costs to preserve their industry leading margins.[2]
Elon Musk has consistently emphasized Tesla’s ambition to become a mass-market producer, introducing prices that are lower in order to make a substantial difference in the carbon footprint of the world’s existing vehicle fleet. Tesla’s CEO mentioned a goal price of $25,000.[1]
In order to achieve this, Tesla will need to make significant progress from their current cost of sales per vehicle (~$39,000 in FY22).[2] A re-designed interior of the Model 3 (Project Highland) and the subsequent learnings could be a step in the right direction.[5]
The company may also need to start manufacturing subcompact vehicles, but this would benefit mostly volumes over margins, as that segment is highly competitive and many automakers are already or will soon be producing electric cars for this market.[6]
It appears that Tesla stock is forming a handle.[7] If Tesla stock remains stable up to the investor’s day event on Wednesday, a jump in the stock price is likely to occur if it surpasses the 200-day moving average.[7]
0. “Tesla Has More “Buys” On Wall Street Than Ever” CleanTechnica, 23 Feb. 2023, https://cleantechnica.com/2023/02/23/tesla-has-more-buys-on-wall-street-than-ever
1. “Tesla Investor Day Has Greater Significance For EV Rivals Than Tesla Itself: Why This Analyst Says It’s I” Benzinga, 24 Feb. 2023, https://www.benzinga.com/news/23/02/31049253/tesla-investor-day-has-greater-significance-for-ev-competitors-than-tesla-itself-why-an-analyst-call
2. “Buy Tesla stock ahead of upcoming investors day, Morgan Stanley says” TipRanks, 23 Feb. 2023, https://www.tipranks.com/news/article/buy-tesla-stock-ahead-of-upcoming-investors-day-morgan-stanley-says
3. “Tesla Investor Day can have greater significance on market’s perception of rivals: Morgan Stanley” TESLARATI, 24 Feb. 2023, https://www.teslarati.com/tesla-investor-day-market-perception-rival-ev-makers-morgan-stanley
4. “Wells Fargo & Company Increases Tesla (NASDAQ:TSLA) Price Target to $190.00” MarketBeat, 25 Feb. 2023, https://www.marketbeat.com/instant-alerts/nasdaq-tsla-a-buy-or-sell-right-now-2023-02-24/
5. “Morgan Stanley sees Tesla unveiling technologies critical for EV mass adoption By Investing.com” Investing.com, 23 Feb. 2023, https://www.investing.com/news/stock-market-news/morgan-stanley-sees-tesla-unveiling-technologies-critical-for-ev-mass-adoption-432SI-3012731
6. “Tesla: Automaker Or Tech Company? My Take And My Investing Choice (NASDAQ:TSLA)” Seeking Alpha, 21 Feb. 2023, https://seekingalpha.com/article/4580350-tesla-automaker-or-tech-company-my-take-and-my-investing-choice
7. “What Will Tesla’s Investor Day Do To EV Giant’s 98% Run?” Investor’s Business Daily, 24 Feb. 2023, https://www.investors.com/news/tesla-stock-what-will-teslas-investor-day-do-to-ev-giants-98-run/