From Morningstar: 2024-04-24 06:15:00

Tesla is the first of the Magnificent Seven stocks to report quarterly earnings, showing a fall in profits but news on affordable models due next year. The company’s fair value estimate is $200, with a 4-star Morningstar Rating, Narrow Economic Moat Rating, and Very High Uncertainty Rating.

An improved near-term outlook has led to an increased fair value estimate of Tesla to $200 per share from $195. The market reacted positively to management’s outlook, with shares up over 10% in after-hours trading. Tesla is viewed as undervalued and trading in 4-star territory.

Affordable Tesla vehicles are set for first deliveries by the end of 2025, expected to be a major catalyst for shares. Full self-driving subscription software adoption is strong, with an estimated over 10% of eligible fleet already using it. Energy storage volume growth forecast has been raised, and 2024 deliveries forecast slightly increased due to recent price cuts.



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