It appears that Tesla’s long-awaited Battery Day wasn’t enough to recharge investors’ love of stocks, but some analysts are more optimistic than ever.
After Tuesday night’s presentation, during which the company led by Elon Musk unveiled innovations in battery construction, factory details and cheaper future models, Tesla shares plummeted after hours and traded. it was down more than 6% in trading on Wednesday morning. But that has not come as a surprise to some analysts.
But Ives reduces investor dismay to a catalyst: “They didn’t announce a million-mile battery, … where there was a huge expectation that they would announce that,” says Ives.
In Whiston’s view, “stocks have nothing left for the short term,” as the manufacturing innovations detailed in Tesla’s filing are “a multi-year history and I think there are some investors disappointed by that. That may. happen when an action is dismissed. ” .
But Ives is much less deterred: the “knee-jerk” negative reaction to the action is an “overreaction,” he argues. And there’s a lot to be optimistic about in the Tesla presentation.
For Ives, the “starter” is Musk “laying the groundwork” for a 50% reduction in battery costs. It’s that cost-cutting announcement coupled with the company’s introduction of a new battery cell, the 4680 cell, that is a “possible paradigm shift,” suggests Ives, and could help the electric vehicle maker continue to have success. profitability and gain market share.
Meanwhile, Morningstar’s Whiston “liked what we heard … and the new product, such as Plaid mode for the Model S due out in late 2021 and a $ 25,000 vehicle in about three years, provides opportunities to obtain more volume, “he wrote. . . . .
From that perspective, those like Ives see Wednesday’s sell-off as a buying opportunity for long-term investors, even as stocks have faced a tough September. This month, Tesla shares took a beating after their stock split and were unable to join the S&P 500 index. The stock is down more than 10% since Sept. 1.
But Ives contends that “it’s very easy to get into the noise and emotional bull / bear story. plus market share and, ultimately, that trajectory towards what could be a profitability of 5, 10 times more than the current one ”.
