Credit Suisse Reiterates Neutral Rating on Tesla (TSLA) After S&P Inclusion, Focus Shifts Back to Fundamentals
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Credit Suisse analyst Dan Levy reiterated a Neutral rating and $400.00 price target on Tesla (NASDAQ: TSLA) after the announcement of the inclusion in the S&P500 on the belief that the focus will now shift back to executing on the growth narrative: capacity expansion, product launches, and vertical integration efforts. Looking ahead, the analyst sees 3 key catalysts:
1. Continued buildout of capacity - expansion of Model Y in China, launch of Berlin and Texas Gigafactories all expected in 2021
2. Product launches – expansion of Model Y in Europe and China, launch of Cybertruck all expected in 2021
3. Vertical integration efforts around batteries, with integration of the new 4680 cells
The analyst stated "With Tesla set to potentially expand its capacity to ~1.4mn units by the end of 2021 (up from ~840k units currently), and with CEO Elon Musk having validated that ’21 deliveries could be in the vicinity of 840k-1mn units (vs.~500k in 2020), the bar is elevated for Tesla and it must now execute on its growth plan".
Shares of Tesla closed at $458.50 yesterday.
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