Tesla Receives PT Raise from Wells Fargo Amid High Investor Day Expectations

Tesla Receives PT Raise from Wells Fargo Amid High Investor Day Expectations

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Analysts at Wells Fargo raised their price target for Tesla shares by 27% to $190 from $150 per share. The firm has high expectations for the updates disclosed during Investor Day.

Analysts at Wells Fargo told investors in a research note that they have high expectations for the upcoming Tesla Investor Day. In their opinion, the main focus will be on the growth of supplies, due to the production of cars on a new platform, which will provide a significant reduction in the price of EVs.

“Tesla will discuss its LT plan, capital allocation & most importantly, its Gen 3 platform,” explain analysts. “While recent global price cuts have driven demand, TSLA likely needs Gen 3 to maintain its 50% delivery CAGR.”

Analysts expect the new Tesla model, built on the third-generation platform, to cost $30,000. According to them, this will allow the company to cover 95% of the price categories in the US, which will give the company a big boost.

“A $30K EV that is as profitable as a comparable ICE model likely drives more near-term momentum,” the firm wrote. “Therefore, credible profit/cost targets & launch timing are key.”

“It is likely that TSLA announces a smaller Gen 3 priced at $30K, but the cost hurdles for a 20% GM EV are high requiring a >$11K reduction in BOM & >$2K in scale benefits,” Wells Fargo wrote. “We estimate possible cost cut targets for Gen 3. E-Powertrain cuts are needed; the sole use of LFP, lower kWh & mass market optimization account for 42% of target. Cuts to the already lean interiors, body, & electronics are 43% with scale/warranty adding another ~15%,” analysts added.

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About the Author

Eva Fox

Eva Fox

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.

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