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Tesla is a buying opportunity at current levels, says Neuberger Berman analyst in an interview. He believes that Tesla has a strong business model and that the continued growth of the company's automotive sector and free cash flow will be drivers.
Neuberger Berman senior analyst, Daniel Flax, said in an interview with CNBC on Monday that Tesla is one of the great opportunities in the tech sector. He stated that the manufacturer could see significant growth potential, despite the influence of “cyclical forces” that will continue to create headwinds in the near future. Flax said the more important part is that Tesla is the market leader in electric vehicles, and much of its strength lies in the fact that the company's business model allows it to provide new services such as autonomous driving.
“They're being impacted by cyclical forces and I expect that to remain a factor in the near term. But I think the bigger story here is that tesla is a leader in electronic [electric] vehicles and part of it is that their business model enables new services like self-driving to be delivered over the air and I think that's powerful.”
In addition, when asked what Flax would do with Tesla shares now, he answered that he would be a buyer at current levels. He sees significant potential for Tesla if the growth of the company's automotive sector and free cash flow continues in the coming years.
“I would be a buyer of Tesla at current levels. I see significant upside in Tesla. I can't give you a specific number. If the automobile growth is there over the next couple of years and the free cash flow growth continues, I expect to see the shares significantly higher.”
© 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.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.