“This electric vehicle, not a Cybertruck, is a glimmer of hope for Tesla’s continued success,” the analyst says.”
11/15/2023 1:10am. (Benzinga Newswire) More and more people are falling in love with Tesla When Will Charlie Munger And Warren Buffet Buy? I’m curious Is it because I envy people who still curse behind the scenes after seeing so many industrial competitiveness such as SpaceX and Starlink?
The fundamentals of Tesla’s stock have been hurt by a slowdown in demand forecasts and the impact of price cuts this year.
On Tuesday, an analyst outlined what the company needs to do to restore its foundation and enjoy continued success.
“Model 2 is critical to the continued success of the $TSLA,” said Pierre Ferragu of New Street Research.
He said he expected the Model 2 to be 15 percent shorter, 30 percent lighter, and 25 percent smaller in battery than the Model 3, and the cost of manufacturing it would be 37 percent less than what it would cost to build the Model 3.
In addition, we expect the manufacturing cost of scale including autonomous driving hardware to be around $21,600.
“In addition, at $25,000 MSRP, Model 2 will cover 80% of the automotive market, paving the way for Tesla to exceed 12 million and $400 billion in automotive revenue by 2030,” Ferragu added.
Ferragu is not the only one who has acknowledged that Model 2 is important to Tesla’s growth story.
Gary Black, a Tesla investment expert and Future Fund Management Partner, said in a post this week that Model 2 will benefit Tesla in the same way that Apple’s iPhone has done wonders for Apple.
He said the Model 2 will keep internal combustion engine carmakers from investing in electric vehicles, just as competitors such as Nokia, Motorola and BlackBerry have stopped investing in smartphones since the iPhone’s launch.
With consumers now very cautious economic conditions, the impact of analysts on modeling the Model 2 is even needed, which is expected to help prevent Tesla’s stable gross car margin from falling.Cathie Wood praised Tesla’s robot army and AI data and said, “Legacy (existing) cars are retreating.”
11/15/2023 11:33am. (Benzinga Newswire)
“Ark Invest’s Cathie Wood believes Tesla Inc (NASDAQ:TSLA) is the world’s largest artificial intelligence (AI) player.
What You Need To Know: On CNBC’s “Squawk Box” Tuesday, Wood highlighted the importance of Tesla’s proprietary data accessibility.
“Five million robots around the world collect data every day and send it to Tesla,” Wood said, referring to the company’s vehicles.
“Tesla has more corner cases than every other company, such as deactivation, accidents, etc.”
AI relies on data, and Tesla has a lot of that data. Wood said the recent explosion in AI is “amazing” and added that as AI evolves, it gets closer and closer to fully autonomous vehicles.
“We think Tesla is the biggest AI player because the autonomous taxi platform is the biggest AI project in the world,” Wood said.
Ford and GM recently retreated from EV strategy, citing profit concerns. Wood tells CNBC the legacy carmaker can’t make a profit without expanding.
“Tesla’s market share expectations rise as they step back,” CEO Ark Invest said.
Tesla will remain the top five in the company’s major funds, Wood said, as long as Ark’s Autonomous Advantage paper holds.
At the time of writing, Tesla was Ark’s Innovation ETF’s third-largest holding stock at an 8.59% weight.
DON’T MISS: Ark Invest’s Cathie Wood Says Bitcoin Price Will Rise To $1.5 Million.
Tesla Price Action: Tesla shares are up approximately 97% since the start of the year. EV stock is up 3.12% at $244.81 on Wednesday afternoon, according to Benzigna Pro.”