📈 Bullish Alert: Tesla (TSLA)

We believe this stock could gain by more than 50% within the next two years.

Author

Ian Dewey
February 26, 2024

Trade Idea: Buy TSLA up to $200

We believe this stock could gain by more than 50% within the next two years.

*ON ALL TRADES, it is important to use proper risk management to correctly allocate and protect your capital. 

TSLA Rolling out Next-Gen EVs for Tech-Minded Drivers

Swans Say: After we took a bullish position on TSLA in March 2021, it ran more than 90%. With the stock down roughly 50% from its split-adjusted peak and consumer demand trending higher, we are doubling down for another ride as the long-term EV winner recharges for its next growth phase.

Absent a demand problem, TSLA will likely be able to work through current production and profitability issues to emerge a stronger, more efficient EV manufacturer.

EV Adoption has a Long Road Ahead: Positive environmental impacts, cost savings, and technological advances are leading more and more consumers to choose EVs over traditional gas-powered vehicles. As consumer demand rises and government mandates take effect, an estimated 25.2 million EVs will be on U.S. roads by 2030.

The Savings are Piling Up: TSLA mentions have accelerated over the last few months as the company has rolled back prices on current models and dropped details of its next-gen electric vehicles. Aside from reduced sticker shock, savings on gas and maintenance bills, along with the $7,500 Federal Tax Credit are making the EV value proposition harder for car shoppers to ignore. Tesla owners are also pumped about the charging range, one pedal driving, durability, and unique tech features of their vehicles.

Cybertruck is taking America by Storm: With deliveries of the highly anticipated AWD Cybertruck underway and Cyberbeast deliveries expected soon, mentions of Tesla’s first truck offering are up +459% YoY.

Long-Term EV Growth Story is Unchanged: While competitive threats from traditional U.S. and Chinese OEMs are emerging, we see TSLA’s strong brand name, tech innovation, and business model diversification making it a huge beneficiary of the anticipated ramp in global EV and clean energy adoption. Growth prospects go beyond the massive EV opportunity including Supercharger Network, the world’s largest fast charging EV network. A growing list of automakers (Ford, GM, Volvo, Mercedes-Benz, BMW) have agreed to adopt the Supercharger standard by 2025.

Recent and Upcoming Events

23Q4 Earnings: January 24, 2024 – Tesla (TSLA) shares fell immediately following the company’s last earnings release featuring a revenue and EPS miss. Wall Street is anticipating a return to 20%+ EPS growth in 2H24.

TSLA is expected to release its 24Q1 earnings report in April.