When the price of Tesla stock (NASDAQ:TSLA) fell by 48% in 2022, Baird carefully looked at how much it was worth.
While Tesla’s stock price remains high on every valuation metric when compared with traditional auto manufacturers, “Given TSLA’s YTD decline, we now view a more balanced risk/reward scenario for the company, albeit one that is still slightly negative due to Tesla’s high absolute valuation and the rising likelihood of downward revisions in the face of probable demand problems.”
In addition, we are concerned about the prospect of broader market pressure brought on by rising interest rates and declining consumer spending, which would disproportionately affect firms with higher valuations like Tesla.
Regarding the Tesla boosters who argue that the full self-driving utopia justifies the company’s price, Sacconaghi and his colleagues are of the opinion that FSD pricing will eventually become mostly obsolete, much like nearly every other automotive technology and feature has in the past.
Tesla Stock Overview
With a $150 price goal and an implied long-term target of 10 million units and 17% operating margins for Tesla by 2050, Baird kept its Underperform rating on TSLA. In pre-market trading, shares of Tesla (TSLA) increased by 1.10% to $184.85. Electricity: Tesla is getting ready to sell its first semi and enter the Class 8 market.
Elon Musk claimed the team from Tesla (TSLA) drove 500 miles in a Tesla Semi that weighed 81,065 pounds in the days before the event. Less than 2 kWh are used per mile by the Class 8 vehicle, which is predicted to charge to 70% capacity in 30 minutes. Four independent motors on the back axle of the semi-truck are what give it its power; they can propel it up a 5% incline at 60 mph. Compared to the average coefficient for a truck and trailer, which is 6.08, the drag coefficient is said to be 0.36.
Featured Image: Unsplash @ Charlie Deets