Tesla (TSLA) Investor Day to Help Stock Continue Gains, Deutsche Bank Says, Raising PT to $250

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Tesla's Investor Day will help the stock continue to rise and re-rate higher, Deutsche Bank says. The firm raises its price target on TSLA to $250 per share.

Tesla will hold an Investor Day on March 1, 2023, at Giga Texas. Analysts at Deutsche Bank believe that this development could help the stock continue to improve its ratings. Given the information that could potentially be revealed during the event, the firm raised its share price target by 13.6%, from $220 to $250.

Deutsche Bank is expecting Tesla to unveil Master Plan 3 announced by Elon Musk and present the main drivers of its long-term growth strategy at the event. This will likely include the company's 3rd generation vehicle platform, which will likely support many future vehicles and segments at a lower cost. The firm's analysts also expect updates on FSD V11 software, HW4 hardware, Cybertruck/Semi production, Model 3 Highland project updates, and expansion of the energy storage business. In addition, it is expected to hear information about the role of proprietary battery technologies, capacity expansion, and raw material procurement activities.

Deutsche Bank says the most important for Tesla stock to rise could be:

1. The lower cost trajectory of the next-gen platform (potentially targeting $20k in COGS/vehicle) and efficiency in capital and output, with details on how the company plans to achieve the anticipated scale and cost;
2. Specific vehicles and segment launches based on next-gen platform and their timelines (Tesla has mentioned SOP as early as the second half of 2024);
3. FSD V11 and Hardware 4 rollout plans that could support and boost the autonomous capabilities of the next-gen platform and potentially support robotaxis;
4. Capital allocation framework with share buybacks.

“All in, we believe that increased clarity around the long-term trajectory for Tesla's global operations, volume growth, and especially scale and cost of Tesla's next-generation models, could reinforce the bull case for the stock,” the analysts conclude.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.