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Tesla Fundamentals Are Extremely Strong: 'An Industry Creation Event'

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Tesla Fundamentals Are Extremely Strong: 'An Industry Creation Event'
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Trip Chowdhry of Global Equities Research believes that Tesla Motors Inc (NASDAQ: TSLA) “is not an Automobile company, but a complete Industry — made of tightly coupled sub-ecosystems.”

Chowdhry reiterated an Overweight rating on the company, with a price target of $385.

Setting Records

“Never in history has any company, but only TSLA has booked orders more than $14 Billion within 4 weeks,” the analyst mentioned, while adding that when completed, the GigaFactory has the potential to be valued at $50 billion.

Chowdhry expects Tesla Motors to deliver 83,500 units in FY2016 based on the company’s guidance of 80,000–90,000 auto units being delivered.

In addition, the analyst pointed out that NHTSA would be a non-issue for the company, given 37 of the 40 complaints have been found to be fraudulent.

In fact, the analyst quoted Elon Musk as having tweeted, “NHTSA confirmed today that they found no safety concern with the Model S suspension and have no further need for data from us on this matter.”

Related Link: Bloomberg's Auto Expert Talks About Tesla's Latest Controversy

An Industry

Chowdhry noted that Tesla Motors was the only auto company with its own gas stations in the form of Super Charging Stations, oil refineries in GigaFactory, retail stores in Tesla Stores and its own Over-the-Air and Cloud, while owning and operating its own service stations.

“All the existing Auto manufacturers are about to experience their own Blackberry and Nokia moment,” according to the Global Equities report.

Chowdhry also pointed out that there has been a “dramatic shift” in that every supplier wants to get on to the Tesla bandwagon and be a supplier to Tesla Motors.

Latest Ratings for TSLA

DateFirmActionFromTo
Sep 2017JefferiesInitiates Coverage OnUnderperform
Sep 2017BarclaysMaintainsUnderweight
Sep 2017Deutsche BankMaintainsHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Elon Musk GigafactoryAnalyst Color Long Ideas Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga

 

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