Tesla Investor Day Has Greater Significance For EV Rivals Than Tesla Itself: Why This Analyst Says It's Important

Zinger Key Points
  • Tesla will host an Investor Day on March 1, 2023.
  • One analyst sees the event as being important for Tesla getting closer to a goal of a $25,000 car.

Electric vehicle giant Tesla Inc TSLA is set to hold an Investor Day to highlight the future of the company. Here’s what one analyst says will be the focus of the event.

What Happened: Tesla announced it is hosting an investor day on March 1, 2023. The event will be hosted at Gigafactory Texas and livestreamed.

Tesla CEO Elon Musk previously hinted at what the day would entail.

“Master Plan 3, the path to a fully sustainable energy future for Earth will be presented on March 1. The future is bright,” Musk tweeted on Feb. 8, 2023.

Morgan Stanley analyst Adam Jonas saw the event as important to highlight the narrative of Tesla and support or continue the rally in shares in 2023.

“We look for Tesla to unveil a suite of technologies required for the mass adoption of EVs at far lower price points — a critical component of Master Plan 3,” Jonas said.

The analyst, who has an Overweight rating on Tesla with a $220 price target, said recent price cuts by Tesla were unprecedented in the automotive sector, dating back to the early 1900s.

A previous note by Jonas titled “It’s 1913 All Over Again” highlighted the launch of the Model T and the moving assembly line by Ford Motor Co F in 1913 that revolutionized auto manufacturing: “Subsequent price deflation transformed the automotive competitive landscape and drove out much of the industry’s players at the time. While the U.S. had 255 auto manufacturers in 1907, by 1929 that was reduced to 44, with 80% of sales accounted for by General Motors, Ford, and Chrysler.”

Related Link: Tesla Q4 Earnings Highlights: Revenue And EPS Beat, Cybertruck And Crypto Holdings Updates And More 

Why It’s Important: Jonas said investors might be underestimating the impact of battery technology and electric vehicle production by Tesla today.

“It is very possible that Tesla’s March 1st investor day may have greater significance on the market’s perception (and ultimately, valuation) for Tesla’s EV competitors than for Tesla itself.”

Jonas noted Musk stressed the goal of mass-market manufacturing and lowering the price point of electric vehicles. The Tesla CEO discussed a target price point of $25,000.

The analyst said filings from Tesla in 2022 showed applications to re-do assembly lines for one of the company’s manufacturing plants. Sources pointed to the revamping of several factories improving costs and manufacturing efforts.

Competition in the electric vehicle sector is coming from startups and legacy automakers in a push to take market share away from Tesla.

“As the competition in EVs intensifies and we see the first signs of a deflationary EV environment, doubling down with a re-vamped Model 3 can bring new enthusiasm and cost savings,” Jonas said.

“In order to maintain their operational lead in the EV space, Tesla is dependent on continuing to make their manufacturing more efficient.”

Jonas said Investor Day is a big step toward Master Plan 3 and getting the company closer to a $25,000 electric vehicle.

TSLA Price Action: Tesla shares are down 3.9% to $194.20 on Friday versus a 52-week trading range of $101.81 to $384.29. Shares of Tesla are up over 80% year-to-date in 2023.

Read Next: Here's How Many Vehicles Tesla Has Delivered And Produced In Each Quarter Since 2019

Photo: Shutterstock.

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Posted In: NewsTop StoriesTechTrading IdeasAdam Jonaselectric vehiclesElon MuskEVsExpert IdeasModel 3Morgan StanleyTesla Investor DayTesla Master PlanTesla Model 3
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