Over the past year Tesla (NASDAQ:TSLA) shares have shed 62% of their value with plenty of bearish developments piling up the pressure on this once golden stock.
If the depressed price is not enough to entice picking up some shares at current levels, then Singapore banking giant DBS has several reasons why investors should load up.
For one, DBS analyst Rachel Miu highlights the company’s “strong management team with long-term vision and innovation.” Cutting-edge solutions like the new 4680 battery technology and full self-driving abilities are “propelling the company to ride on the next advanced technology cycle, where smart mobility will be the norm.” Furthermore, getting rid of additional costs and offering an improved level of customer support to its vehicle owners, the company’s “innovative” direct sales model has turned out to be a success.
Secondly, there’s a vital “growth catalyst” from its overseas markets which account for around 70% of total shipment volume. Annual capacity in China has been doubled to roughly 1 million units while the Berlin plant’s capacity has also almost doubled to 1,900 vehicles per week. The company targets global capacity of 20 million EVs a year by 2030. “The market diversifications also help to reduce distribution cost,” notes Miu, “as supplies are closer to the respective markets.”
Lastly, Miu applauds the EV maker’s “sterling performance.” Between FY12 and FY19, the company notched combined losses of $6.39 billion, but by 2020 it turned this performance around and generated combined net earnings of $6.21 billion from FY20-21.
Looking ahead, the company stands to further benefit from the Inflation Reduction Act that will potentially give a boost to its profit margins, while it is also presently “expanding” its vehicle and battery production capacity.
All told, then, Miu considers TSLA shares a Buy while her $180 price target highlights the potential for one-year returns of 43%. (To watch Miu’s track record, click here)
The Street’s average target predicts even bigger gains; the figure currently stands at $229.11, making room for 12-month growth of ~83%. Rating wise, based on 20 Buys, 9 Holds and 3 Sells, the analysts’ view is that this stock is a Moderate Buy. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.