Chowdhry Breaking Down Tesla's Master Plan 2

On Wednesday, Tesla Motors Inc TSLA announced its “Master Plan Part Two,” which included Elon Musk’s plan build heavy duty trucks, large passenger vehicles and SolarCity Corp SCTY's role in providing solar roofs with Tesla’s batteries.

Additionally, Musk highlighted the potential for Tesla owners to make money when they are not using their car. Owners in the future could be able to utilize the company’s advanced autopilot feature to act as a driverless-taxi for individuals around the area.

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Chowdhry’s Take

After reviewing Tesla’s Master Plan, Global Equities Research’s Trip Chowdhry came up with an equation for Tesla’s new industry equation while maintaining the company’s Overweight rating and $385 price target:

GigaFactory x (Power Generation +Power Storage) + Autonomy x (Power Consumption) + Sharing Business Model = New Industry

Chowdhry’s Key:

• Power Generation = Solar City
• Power Storage = Stationary Storage + In-Motion Storage
• Stationary Storage = Power Wall + Power Pack +...
• Power Consumption = Autonomy x (Model S, Model X, Model 3 + New Future Offerings)
• New Future Tesla Offerings = Compact SUV + Heavy Duty Trucks + High Passenger density urban transport
• Sharing Business Model = Tesla's Shared Fleet

List Of Catalysts For The Future

Factoring the equation into research, Chowdhry believes there are several stock catalysts for Tesla:

• Inauguration of Tesla’s GigaFactory
: July 29, 2016

• Start of Tesla PowerWall mass customer shipments: October 2016
• Reveal of Tesla Compact SUV: October 2016
• Reveal of Tesla Heavy Duty Truck: July 2017
• Reveal of Tesla High Density Urban transport: October 2017
• Platooning: October 2017
• Sharing Business Model: 2020

According to TipRanks, Trip Chowdhry is among the better analysts covering Tesla, with a 62 percent success rate and an average return per recommendation of +16.2 percent. The analyst is ranked 300 out of 4073 analysts.

At time of writing, Tesla traded at $2224.94, down 1.50 percent on the day.

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