Tesla Inc (NASDAQ:TSLA)’s “golden electric vehicle (EV) success story” is still in the early days of playing out with customers, wrote Wedbush Securities analysts in a note to clients on Friday, boosting its target price on TSLA stock from $215 per share to $300 and reiterating its ‘Outperform’ rating.
They believe the “sum-of-the-parts story” for Tesla now further comes into play with its supercharger network, energy business, AI driven autonomous path, unmatched battery ecosystem, and increased production scale globally.
The analysts also think Tesla is seeing steady demand post price cuts in the US and China with margins now in stabilization mode that should bottom over the next one to two quarters.
“In a nutshell, Musk and Tesla are playing chess while other automakers are playing checkers in this broader EV green tidal wave,” they wrote.
Yesterday, Tesla announced that it will be collaborating with GM to integrate the North American Charging Standard (NACS) connector design into its EVs, providing GM EV drivers with access to 12,000 Tesla superchargers in fiscal 2024 and without an adapter by fiscal 2025.
“At the end of the day Tesla essentially owns the charging network ecosystem domestically and GM as well as Ford need access for success of its EV strategy and broader EV ambitions over the coming years,” the analysts added.
They estimate Ford and GM combined could add another $3 billion to services EV charging revenue for Tesla over the next few years in another “accretive poker move by Musk & Co”.
Shares of Tesla rose 6% to $248.03 in late-morning trading on Friday, while also on track for its 11th straight session of gains.
Tesla’s stock price is up 130% year to date.
Contact Sean at sean@proactiveinvestors.com