Electric vehicle stocks ended the week ended September 17 on mixed notes as investors reacted to macroeconomic uncertainty dragging the broader market down, analyst actions and a positive policy move.
Well, here are the main events that took place in the EV space during the week:
Tesla Company Updates and Analyst Actions: The cost of making one Tesla, Inc. TSLA car has drop about 57% between 2017 and now, with improvement mainly due to better vehicle design and new factory design, martin vicha, Vice President of Investor Relations at Tesla, reportedly said at a tech conference. The executive also confirmed that Tesla has access to all the battery cells it needs for the first time.
Regarding the prospect of a cheaper electric vehicle across the board, he reportedly said one could be in the pipeline, although the focus right now is on the Model Y and Model X vehicles, which are seeing stronger-than-expected demand.
Tesla shares benefited from several positive analyst actions this week. earlier this week, Needham analyst Vikram Bagri upgraded the shares to hold from underperform, citing the lack of any catalysts that could lead to underperformance in the near term. However, the analyst remained cautious on the rating.
Adam Jonas from Morgan Stanley said that according to Investing.com, the “Inflation Reduction Act” could provide a boost of $10,000/unit and therefore could be worth over $30 billion for the company. Deutsche Bank analyst Emmanuel Roesner raised its Tesla target price to $400 from $375 while maintaining its buy rating, StreetInsider reported.
In another positive development, Tesla has reduced lead times for deliveries of its Model Y and Model 3 units in China to at least a week, according to information on the company’s Chinese website. This appears to indicate that the Shanghai GigaFactory is back up and running after the COVID-19 shutdowns in April and the July refurbishment shutdown.
See also: Is Tesla the new Apple? fund manager…
