Diamond Member Pelican Press 0 Posted April 24, 2024 Diamond Member Share Posted April 24, 2024 Tesla gets upgrade from Bank of America Bank of America thinks Tesla’s first-quarter results mark the start of a big turnaround. Analyst John Murphy upgraded the electric vehicle maker to buy from neutral. He also reiterated his price target of $220, which implies upside of 52% from Tuesday’s close. The upgrade comes as Tesla reported weaker-than-expected earnings and revenue for the first quarter. In fact, the company’s 9% revenue drop from the year-earlier ******* was its biggest since 2012 . Still, shares spiked more than 10% in the premarket Wednesday after CEO Elon Musk said production of new affordable vehicles can begin sooner than anticipated. TSLA 1D mountain TSLA pops BofA’s Murphy noted that the quarterly numbers “essentially knocked out the recent negative catalysts with facts or reasonable explanations.” These explanations include: “Slow volume growth, which may continue until new products are launched in 2025, but in the interim may be supported by lower pricing;” “Price cuts had been expected to weigh on ****** margins, but TSLA’s cost saving efforts resulted in margins that were far better than feared;” “Model launch concerns, particularly pertaining to the low-cost platform, were mitigated with TSLA’s decision to pull forward the launch schedule and broaden its capabilities by leveraging existing architecture and capacity.” Murphy also said positives are building as the year goes on, including a faster-than-anticipated launch for an affordable vehicle, the Aug. 8 robotaxi event and cost savings following the company’s workforce reduction . “Admittedly, the combination of all of these may not structurally change the long-term path of the company, but in the near-term the tide in news flow appears to suggest the risk to the stock is skewing more positively,” Murphy said. This is the hidden content, please Sign In or Sign Up Tesla Inc,Stock markets,Investment strategy,business news #Tesla #upgrade #Bank #America This is the hidden content, please Sign In or Sign Up 0 Quote Link to comment https://hopzone.eu/forums/topic/21024-tesla-gets-upgrade-from-bank-of-america/ Share on other sites More sharing options...
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