Wolfe Research Expects a Tesla (TSLA) Moonshot in the Coming Weeks Leading to EPS of $40 in 2025

Wolfe Research analyst Rod Lache reiterated a Peerperform rating and $675.00 price target on Tesla (NASDAQ: TSLA) but noted that there could be a moonshot coming in the legislative pipeline.

He stated: "Based on discussions with our Industry contacts, we would not be surprised to hear about a "moonshot" for vehicle electrification over the next few weeks, aimed at shifting the U.S. from laggard to leader." This moonshot could push for 10 million EVs per year by 2030, or roughly 60% of U.S. new vehicle sales.

He went on to state "Tesla's EV business has already achieved "escape velocity". And we believe that this company may be viewed as the largest beneficiaries of U.S. EV legislation. But perhaps most interestingly, we still believe that the Street may be overlooking a number of emerging opportunities. In this report we focus on a few that could become very large contributors to profitability over the intermediate term. These include Semi-Autonomous (FSD) Subscriptions, Vehicle Service that should turn highly profitable, a burgeoning Insurance Business, the world's largest Fast Charging Network, and other Connected Car services. We now believe that TSLA may reach ~$40 EPS by 2025".

Breaking out how he came up with $40, he notes:

• $31 EPS from the company’s base Auto Business (including Semi)
• $6 from Feature Subscriptions (FSD & Connectivity)
• $4 from Vehicle Service
• $2 from Insurance
• $2 from the company’s growing Energy business
• Partially offset by ~($7) from Opex/Interest

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $581.50 yesterday.

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