Today, after the start of trading in the United States, Tesla's shares rose significantly, it was able to rise to a maximum that has not been achieved since the summer of 2018.
The Credit Suisse has a notably pessimistic view of Tesla, with a $200 price target. But, now the firm sees Tesla's big advantage and expresses its praise to Tesla.
“Despite the fact that we have a low Tesla rating, we still consider it important to give Tesla credit where it deserves it,” Dan Levy, an analyst with Credit Suisse, wrote on Monday for investors. "We believe that Tesla is a leader in areas that are likely to shape the future of the automotive industry - software and electrification ... Tesla is likely to be ahead of the others with batteries - the core of the electric drivetrain," said Levy.
The analyst also refers to the upcoming “Powertrain Day,” which should explain in detail the Tesla battery strategy. Interesting points will be an increase in production, lower costs and an increase in the efficiency of each battery. “We expect Tesla to emphasize why his battery life gives it a clear competitive advantage over other automakers.”
The analyst noted that last year Tesla had a total 44 gigawatt hours (GWh) of battery capacity, with 35 GWh from its Nevada Gigafactory and 9 GWh imported from Panasonic. According to Levy, that's so far ahead of the industry that it is just shy of the 46 GWh of all other automakers in the world combined. GWh is a unit that measures energy output and represents 1 billion watt hours.
"We expect Tesla to highlight why its work in battery gives it a clear competitive advantage vs. other automakers," Levy said.
Levy also expresses concern about the German Tesla Gigafactory. In his opinion, there are several risks for Tesla in Germany. The main concern is the speed of planning and approval procedures.
However, he notes that German politicians offer support for Tesla. Minister of Economics Peter Altmaier has offered federal support for the planned creation of the Gigafactory. “For people like Elon Musk, the red carpet is scattered throughout Europe. That's why the solution for Brandenburg and Germany is a big success,” Altmaier said. “That's why Brandenburg also wants this plant to be quickly implemented. If we are asked for help as a ministry, we will be happy to help.” He emphasized: “If the factory doesn't arrive, it will harm the whole of Germany.”
In the first phase, according to the government of Brandenburg, 3,000 people will find work. According to Prime Minister Dietmar Woidke, the country is in intensive negotiations with Tesla. The State Parliament Finance Committee is discussing a purchase agreement this Wednesday. Construction near the autobahn is scheduled to begin in the first half of 2020.
“I believe this work will come,” Altmaier said. “I also highly recommended Elon Musk to make this investment in Germany.” He called the Tesla solution “a great addition to our location.” “I want us to be as good and even better in the field of electronic mobility than we were in classic drive technologies before,” the minister said.
According to the Brandenburg State Chancellery, Tesla, like any other company, has grants from the federal state and a joint task to improve the regional economic structure and from the European Social Fund for the qualification of skilled workers. Investments of 100 million euros can be subsidized, for example, with 6.8 percent. According to earlier information, Tesla should talk about investments of up to 4 billion euros.
At least everything is going well for stocks, with a maximum of $385 now within reach. Today, stocks were able to rise another 5 percent at the start of the US stock market, and the plus is a whopping 46 percent from a 3-month perspective.