yujie chen/iStock Editorial via Getty Images
Stifel launched coverage on Tesla (NASDAQ:TSLA) for the first time, with a Buy rating and price target of $265. The firm pointed to the electric vehicle maker’s vast global supply chain coupled with internal manufacturing support cost advantage and strong margins.
Analyst Stephen Gengaro and his team believe Tesla (TSLA) is very well positioned to deliver robust multi-year growth in the next three years due to upcoming revamps to both the Model 3 and Model Y vehicles, as well as the introduction of the next-generation Model 2 vehicle.
Gengaro also thinks Tesla’s (TSLA) full-self driving initiative can bring value through sales, licensing, and the potential RoboTaxi opportunities.
The recent wave of downward earnings estimates are seen removing an overhang on TSLA shares.
Shares of Tesla (TSLA) fell 0.44% premarket on Wednesday to $186.53 vs. the 52-week trading range of $138.80 to $299.29.
EV watch: Rivian Automotive (RIVN) sent some jolts across the electric vehicle sector with its announcement that the company would form a joint venture with Volkswagen (OTCPK:VLKAF) (OTCPK:VWAGY). The initial and planned investments by Volkswagen (OTCPK:VLKAF) of $5 billion, in addition to Rivian’s (RIVN) current cash position, are expected to provide the capital to fund the electric vehicle maker’s operations through the ramp of R2 in Normal, Illinois and the midsize platform in Georgia, which is seen as enabling a path to positive free cash flow and meaningful scale.