Tesla’s $25K Compact Car Could Drive Bigger Stock Gains Than Robotaxi, Analyst Predicts
- by EconoTimes
- Sep 29, 2024
- 0 Comments
- 0 Likes Flag 0 Of 5
Hawaiian Airlines Rolls Out Free Starlink Internet on Airbus A330 and A321neo Fleet
As anticipation builds for Tesla’s Robotaxi, some analysts believe the company’s upcoming $25,000 compact car will have a more significant impact on its stock. Gary Black of The Future Fund argues that entering the affordable compact market could boost Tesla’s sales and stock value.
Analyst Suggests Tesla’s $25K Compact Car Will Outshine Robotaxi as the Biggest Stock Driver
Analysts are seizing the opportunity to provide their perspectives on the vehicle's impact on Tesla's stock, as the unveiling of the Tesla Robotaxi is imminent.
The Robotaxi, in conjunction with Tesla's eventual deployment of a fully autonomous Self-Driving suite, is widely considered the most significant catalyst for the stock, per Teslarati.
The stock is significantly bolstered by the operation of a Robotaxi fleet for owners, which would generate revenue. At the same time, they are asleep, the licensing of the suite to other manufacturers, and various other factors.
Nevertheless, according to one analyst, that is not his primary concern, and he is currently preoccupied with something else that is more thrilling.
Gary Black of The Future Fund states that the $25,000 vehicle is the more significant catalyst for Tesla shares.
Tesla will experience improved sales and higher share prices if it enters the affordable compact sector and captures market share from vehicles such as the Toyota Corolla (the only car to trail the Model Y on last year's best-sellers list).
In an interview with Schwab Network, Black elaborated:
“My $270 [price target] just includes a take rate on FSD. I include nothing for Robotaxi. I have a big energy ramp-up over the next ten years and a big services ramp-up. But the auto business is the big chunk of that $270. Look, you can be excited about owning $TSLA, and the most important thing to me is the $25,000 to $30,000 car…This is very reminiscent of 2020, when they introduced the Model Y. The Model Y was a new category…the bears said it was just a big Model 3. That is not true because you get a whole new TAM going into a new category…Once you have a compact, you’re bringing the Tesla brand, and its performance, and its safety record, and all the things people love about Tesla…and you’re putting it in the compact category. They’re going to take a lot of market share by doing that.”
While Robotaxi Holds Major Potential, Tesla’s $25K Vehicle Could Still Generate Significant Buzz
This is an intriguing perspective on the stock; however, the comparison between Robotaxi's development of a completely autonomous driving suite and the mere introduction of a new vehicle in a competitive market is unfair.
Tesla's stock would increase significantly if it introduced a completely autonomous vehicle to the market, as no other company has. This opportunity would likely surpass that of an affordable sedan.
However, it does not diminish the potential excitement a $25,000 vehicle could generate for Tesla.
Editor's Picks
Please first to comment
Related Post
Stay Connected
Tweets by elonmuskTo get the latest tweets please make sure you are logged in on X on this browser.
Sponsored
Popular Post
Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated
28 ViewsJul 29 ,2024