From Morningstar: 2024-04-10 05:53:00

Tesla (TSLA) shares fell 6% after reports of cancelling affordable vehicle plans. Elon Musk disputed the claim. Shares down 32% in six months. Morningstar Rating: 3 stars; Uncertainty Rating: Very high. Updates to Tesla’s business model to meet mass EV adoption. Critical factors to Tesla shares’ risk. Fair value estimate at $195. Future forecasts included.

Tesla is one of the largest battery electric vehicle automakers globally. Plans to launch affordable SUV. Increasing its production capacity with new factories. Investing in R&D to improve technology and reduce costs. Focus on automation and reduction of parts in vehicles. Expansion of supercharging network to eliminate road trip anxiety.

With a Very High Morningstar Uncertainty Rating, Tesla faces risks in the automotive market, competition, price cuts, regulation, and ESG concerns. Fair Value Estimate at $195. Forecasts include flat deliveries in 2024, lower ASP, and 18% automotive gross margins. Long-term forecast for over five million vehicles per year in 2030.

Tesla aims to reduce manufacturing costs, expand services such as autonomous software, insurance, and charging business. Revenue growth and margin expansion expected. Energy generation and storage business to have over 20% annual growth due to demand for energy storage systems. Forecasts included for the next 10 years.



Read more at Morningstar: Are Tesla Shares Out of Juice?