By Michael Elkins 

Bernstein reiterated an Underperform ranking and $150.00 worth goal on Tesla (NASDAQ:) forward of the electrical automobile maker’s investor day on March 1st. Analysts consider that crucial subject for Tesla going into this occasion is the standing of its next-gen, lower-cost automobile platform. Bernstein has no expectation for a product announcement, however incremental element on pricing, providing and particularly timing is most essential.

Throughout its This fall 2022 earnings name, Tesla hinted that particulars of a brand new mannequin might be revealed at its analyst day. Nonetheless, a brand new mannequin which is sufficiently low value/low worth to push downmarket and drive significant quantity development would should be a totally new platform. Even assuming Tesla has the absolutely full design, Bernstein believes it will possible take 1.5-2 years to start out delivery any significant quantity.

Tesla’s March 1 investor day is predicted to debate growth of in-house cell manufacturing, its go-to-market technique for Cybertruck, growth of the corporate’s manufacturing footprint, development of vitality storage, capital allocation, and its next-gen automobile platform.

Elon Musk has additionally acknowledged that he’ll focus on “Grasp Plan 3, the trail to a totally sustainable vitality future for Earth”. Tesla launched its “Grasp Plan” in August 2006 (when it solely bought the Tesla Roadster), which included a imaginative and prescient to construct a variety of reasonably priced EVs and supply electrical energy technology choices. Tesla’s second grasp plan was unveiled in July 2016, which outlined Tesla’s ambition to promote photo voltaic and vitality storage, and its imaginative and prescient for Tesla house owners to hire/share their automobiles with others as a robo-taxi.

Analysts wrote in a word, “As investor sentiment has rebounded, a brand new Tesla bull case has emerged arguing that Tesla has a sturdy structural value benefit, which can permit it to seize outsized quantity and dominate the EV market with favorable economics over the long run. In consequence, the inventory shrugged off a miss on margins in This fall as the corporate reiterated its 1.8M quantity development goal in 2023. We consider that within the near-to-medium time period, Tesla is unlikely to ramp up new fashions quick sufficient to satisfy quantity expectations of two.4M in 2024. Furthermore, we consider that costs cuts underscore the extremely aggressive nature of the auto market, the place sustained excessive margins and excessive quantity is unprecedented, and which we consider is critical to justify Tesla’s premium valuation. Whereas the Analyst day is probably going to offer some incremental particulars on the next-gen automobile platform, it’s unclear that Tesla will have the ability to adequately handle our concern round timing, and on web, we do not see the investor day possible being a catalyst for the inventory.”

Shares of TSLA are up 0.61% in pre-market buying and selling on Wednesday.