(Briefing.com) HSBC initiated coverage of Tesla (TSLA) with a Reduce rating and $146 price target. Just sayin'.
Switching subject, I take it you acknowledge that the so called lack of demand for EVs is fluff, even if insinuated by THE Street. $146?!? By God, I must sell now!
Gary Black on X: New $TSLA research initiated by HSBC with the equivalent of a Sell rating getting blame for TSLA’s -5% decline today. Most bearish part is his $146 PT, of which 40% comes from FSD, Dojo, and Optimus, which leaves just $90/share in value for the traditional EV business. For reference, we put $300 in value on the EV business based on a 2030 EPS of $22, a 30x P/E and a 13.1% cost of equity. Analyst Michael Tyndall says his valuation is 50% DCF/50% based on global tech multiples. Without seeing his analysis, we can’t poke holes in it. But our bet is analyst Tyndall is assigning a multiple based on the tech category rather than his projected growth rate. If so, that isn’t consistent with financial theory. We’ll try to get a copy of the full report.
Didn't grab the Yahoo link at the time, was lazy and or tired and can't find it now - but I seem to recall analyst was longer term bullish on TSLA (5 years out or so) but short term negative mainly because a) of one man at the top and cult of personality thereof, b) new initiatives (FSD, new factories etc you're more aware of these things than me) will take time to become profitable and contribute strongly to earnings, c) a couple of other items can't seem to recall. And somewhere in the comments was of course mentioned ... margin compression. Yesterday was a 6 day low close a lot closer to 3rd qtr earnings swing low than it reaching $300 any time soon.
Agree with your last comment. HSBC analyst or Biden wink for the unions to go after Tesla... The share price was significantly affected by the news. $300 seems a long way off. Let's see what December looks like... Cybertruck release and solid Q4 results may take us there.
Huawei launches its rival to Tesla’s Model S https://www.cnn.com/2023/11/10/cars/china-huawei-new-ev-launch-intl-hnk/index.html ..... “In all honesty, I think comparisons with the Model S may be a bit ambitious on most metrics that I can find information for,” he told CNN, noting that some performance metrics had not been fully released. “Where the S7 does stand out though is the 800-volt platform, which should enable very fast charging. Tesla [doesn’t] yet use an 800-volt platform, so the S7 will have an edge in this area,” Rainford said. ..... And price.
No flipping allowed. https://www.engadget.com/tesla-fine...r-50k-if-they-flip-it-too-soon-173137300.html
Elon is a "free-market" guy but only for him. Especially hates subsidies and tax-breaks unless he gets them.
Wrong. Musk has repeatedly said he is against subsidies and tax breaks but if they exist he will take them. They are a market distortion like unions and rent controls.