Tesla is on the verge of becoming the electric vehicle equivalent of Amazon’s and Apple’s hugely successful cloud computing businesses, suggests Wedbush.
What has changed recently is the Ford and General Motors supercharger partnerships, said the US broker,
"We estimate Ford and GM combined could add another US$3bn to services EV charging revenue for Tesla over the next few years," said the broker.
“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/scope globally adding to the Tesla golden EV success story still in the early days of playing out with customers.
“This reminds us of when the Street started to realize the margin story and valuation at AWS for Amazon and the growth/margins of the Apple Services story in Cupertino," said Wedbush.
Both of these dynamics were key to the re-rating of both Amazon and Apple over the years, it adds, despite many pushing back against the valuation thesis.
“We believe Tesla could be next as investors recognize the underlying SOTP valuation with batteries and AI key.
“For Tesla, we believe the supercharger network is a large monetization opportunity for the company in its supercharger story, adding to its growing sum-of-the-parts valuation that we now peg at $300 per share with its developing energy business along with its well-established EV machine.
In addition, Wedbush believes Tesla is on track to hit 1.8mln deliveries this year with China demand staying strong.
'Outperform' is the broker’s rating.