Was Tesla -Chef Elon Musk also does – the PR professional is sure to attract attention. Recently he ran open doors with a visit to the German elite from politics and business, after all, he wants to build hundreds of thousands of electric cars soon outside the gates of Berlin and almost within sight of the assembled German car competition. However, the recent screeching halt for tech stocks on the stock exchange has also brought the rush of his company’s papers to a sudden standstill. What’s going on at Tesla, how analysts assess the stock and what the course has done.
THAT’S ON AT TESLA:
While the major German car maker Volkswagen ,
Daimler and BMW In the Corona crisis in many regions of the world, having trouble getting their cars to customers, Musk can almost rub his hands together – because the demand for electric cars has hardly suffered during the crisis. Funding programs like those in Germany even help alternative drives in Europe to achieve the long-awaited upswing. Overall, deliveries by the Americans in the second quarter were only 5 percent below the previous year’s figure due to the strong demand for the 3 and Y models.
But even Tesla is not exempt from the restrictions of the corona pandemic – Musk had a bizarre argument with the local authorities in California at the height of the lockdown in the USA. Despite everything, Tesla plans to deliver more than 500,000 cars this year. In 2019 there were around 367 500.
Tesla is trying to create additional production capacities around the world. In Grünheide just outside Berlin, Tesla is currently building its first European “Gigafactory”, in which the Model Y compact SUV will initially roll off the production line from summer 2021. 500,000 vehicles annually are planned for the plant so far. While thousands of jobs are threatened in the German auto industry, Tesla is desperately looking for skilled workers for the Berlin plant.
Tesla had built a plant in Shanghai in record time and delivered the first vehicles around the turn of the year 2019/20. In the USA, a second car factory is to be built in Texas in addition to the main plant in Fremont (California).
And Tesla can also show some stability in the business figures. The fourth quarterly profit in a row was achieved in the second quarter of the year – this is the first twelve-month profit streak in the company’s 17-year history. At the inclusion in the S&P 500 share index, which is highly regarded worldwide
Tesla recently just missed, four profit quarters in a row are a prerequisite for this.
In any case, Musk cannot sit back and relax trying to remain the world’s largest electric car manufacturer in the future. These days, the car giant Volkswagen is starting delivery of its ID.3, which should bring the Wolfsburg-based company in the electric age similar successes as the Golf with combustion engines. BMW will soon do it with its first fully electric SUV iX3, the competitors of Mercedes (EQC) and Audi (E-Tron) after. And there is also a threat of competition with trucks: Tesla wants to score points here with the semi-electric truck – recently formed with the US auto giant General Motors
and the start-up Nikola is a well-known opponent.
WHAT ANALYSTS SAY:
Of the 37 analysts who Bloomberg lists as observers of Tesla shares, only six currently recommend the title as a buy because of the price development in recent months. 18 are a draw, 13 advise to sell. The average target price is just under $ 300, while the stock currently costs a good $ 370. The spectrum is wide: the optimists estimate the potential to be $ 566, pessimists go down to less than $ 20.
UBS analyst Patrick Hummel believes that Battery Day, which has been announced for September 22nd, will be an important event for investors. It should be about a new battery technology. However, Hummel initially sees a phase of consolidation for the share given the current fundamentals. He doubled his price target for the paper from $ 160 to $ 325.
Goldman Sachs analyst Mark Delaney was somewhat surprised by the timing of the recent $ 5 billion capital increase. In view of the recent capital increases by the car manufacturer and the investment plans, these are not unexpected.
The change in the auto industry is still at an early stage, but the competitive advantage of the US electrical manufacturer could soon decrease, wrote analyst Philippe Houchois of Jefferies. However, Tesla continues to stand out from the competition in areas such as the software used, the battery capacity and production efficiency. According to the figures for the second quarter, he also raised his estimate for the operating profit in the current year by 50 percent.
WHAT DOES THE SHARE DO:
Tesla stock has seen an almost unprecedented rally this year. While the ratings of other carmakers have not just been in the basement since the Corona crisis, Musk set one course record after another with his company. In fact, the stock became so expensive that it threatened to get out of financial reach for ordinary investors. Tesla announced a stock split without further ado, and four new ones were simply added for an existing paper.
However, the path for Tesla was not without potholes: If the share price adjusted for the share split more than doubled by the end of February, it went down even faster with the Corona crash. The share fell to a good $ 70 by mid-March, when the panic on the markets slowly subsided. The Tesla paper then picked up again, in June it went over the $ 200 mark for the first time. On September 1, the price then screwed up to the previous record high of $ 502.49.
With the correction in tech stocks, the missed entry into the broad Wall Street benchmark index S&P 500 and the announced competition from GM and Nikola, the Tesla share then fell back to a good $ 370.
What the still high prices mean only becomes clear in the context of other car manufacturers. Tesla is currently worth around 346 billion dollars on the stock exchange, almost twice as much as the three German car companies Volkswagen, Daimler and BMW combined.
The US auto companies General Motors, Ford and Fiat Chrysler are downright market dwarfs against Tesla. Also the formerly most expensive car company in the world Toyota
only sees Tesla’s taillights: The Japanese are valued at around $ 214 billion.
For investors in the traditional auto heavyweights, it will be crucial who in the world can still make money from electric drives in the future: Two of the major auto markets, China and Europe, are tightening their environmental guidelines to such an extent that manufacturers have little other option than a large one To sell part of their fleet with electric motors in the future. After long doubts, Tesla has recently proven that it can make money with e-cars. That stands for VW & Co still out./men/eas/jha/
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