Tesla stock price sees 50% upside potential, according to UBS. The firm's new memo is titled, "Time to be bold: Upgrade to Buy" as it is now a very attractive entry point into a robust and fast-growing business.

Looking through Q2, Tesla's future is brighter than ever.

UBS raised Tesla shares to Buy, (from Neutral), and confirmed its $1100 price target. Although the manufacturer's shares have lost about 35% in value since the beginning of the year, the firm believes that the operating outlook is better than ever before, thanks to several important aspects: record-high order backlog and two new gigafactories ramping up; margin momentum: after the Q2 dip, auto gross margin should structurally exceed 30%, driven by pricing and product & process innovation, a structural competitive edge in key supply chains, resulting in superior growth and profitability.

While UBS cut its 2022 EPS by -12% due to the Shanghai lockdown, the firm is raising its EPS by 40% over the next three years. As a result, EPS is $28 EPS (diluted) 2025E, to be achieved mostly with already known products and production facilities.

UBS expects Tesla's vertical integration in the semiconductors, software, and battery areas to result in superior absolute growth and profitability in the years ahead. Integration represents a strong competitive advantage in the face of structurally tight supply chains. Batteries are the next bottleneck in the industry, according to the firm. Tesla is able to outperform the competition thanks to a combination of its own cell capacity, its lead over global competitors in the use of LFP cells, and its high share of direct-sourced battery products, primarily lithium. "With a stable dominant global BEV market share of 20%, Tesla we believe is best positioned to become one of the top-3 global car makers by 2030. Latest headlines about a 10% salaried staff reduction don't change this long-term outlook, in our view."

Source: Re-posted and Summarized from Eva Fox at tesmanian.

My Take: I already have Tesla as a buy. The recent dip is just a buying opportunity.

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Tesla stock price sees 50% upside potential, according to UBS. The firm's new memo is titled, "Time to be bold: Upgrade to Buy" as it is now a very attractive entry point into a robust and fast-growing business.

Looking through Q2, Tesla's future is brighter than ever.

UBS raised Tesla shares to Buy, (from Neutral), and confirmed its $1100 price target. Although the manufacturer's shares have lost about 35% in value since the beginning of the year, the firm believes that the operating outlook is better than ever before, thanks to several important aspects: record-high order backlog and two new gigafactories ramping up; margin momentum: after the Q2 dip, auto gross margin should structurally exceed 30%, driven by pricing and product & process innovation, a structural competitive edge in key supply chains, resulting in superior growth and profitability.

While UBS cut its 2022 EPS by -12% due to the Shanghai lockdown, the firm is raising its EPS by 40% over the next three years. As a result, EPS is $28 EPS (diluted) 2025E, to be achieved mostly with already known products and production facilities.

UBS expects Tesla's vertical integration in the semiconductors, software, and battery areas to result in superior absolute growth and profitability in the years ahead. Integration represents a strong competitive advantage in the face of structurally tight supply chains. Batteries are the next bottleneck in the industry, according to the firm. Tesla is able to outperform the competition thanks to a combination of its own cell capacity, its lead over global competitors in the use of LFP cells, and its high share of direct-sourced battery products, primarily lithium. "With a stable dominant global BEV market share of 20%, Tesla we believe is best positioned to become one of the top-3 global car makers by 2030. Latest headlines about a 10% salaried staff reduction don't change this long-term outlook, in our view."

Source: Re-posted and Summarized from Eva Fox at tesmanian.

My Take: I already have Tesla as a buy. The recent dip is just a buying opportunity.

Re Posted From: Tesla Stock Price Sees 50 Percent Upside Potential

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