Tesla Is Determined To Win In The EV Price Wars

Tesla Service Center. Tesla designs and manufactures the Model S electric sedan IV


Investment thesis

Tesla, Inc. (NASDAQ:TSLA) is a growth company. It is actively harnessing the power of its brand and shifting increased costs to the consumer. In 2022, Tesla was on its way to active expansion through increased electric vehicle (“EV”) production. However, 2023 likely will

With falling real income and rising interest rates on loans, Tesla is facing problems with demand. In Q4 2022, Tesla manufactured 439 700 and sold only 405 300 EVs. So, the difference between production and sales reached 7.8%, accelerating compared to Q3 2022 (6%).

Invest Heroes

Especially since Tesla has almost doubled its production capacity in 2022 and is ready to produce up to 1.9 million EVs per year.


Tesla has one of the most stable positions in this sector due to its high dollar margin per EV.

Invest Heroes

We have revised our 2023 Tesla revenue forecast downwards from $134.8 bn (+65% YoY) to 123.8 bn (+52% YoY) due to introduction of EV discounts (6%-20%) and a greater-than-expected shift in demand towards the Model Y.

Invest Heroes

We have also revised downwards our 2023 Tesla EBITDA forecast from $31.5 bn (+81% YoY) to $17.1 bn (-2% YoY) due to lower revenue projections and downward revision of 2023 gross margin forecast from 28% to 17% because of margin discounting pressure on the company. We have revised our 2025 EBITDA forecast downwards from $109.3 bn to $81.8 bn due to greater shift in demand towards the Model Y, which is less profitable.

Invest Heroes

Based on the new assumptions, we give a BUY rating to the stock. The upside from the current price is 140%.

Invest Heroes