Tesla14 Jul 2020 15:56
"Is now the time to redeploy capital" after the stock's latest run? "NO," analyst Alexander Potter says, raising his delivery estimates after the 2Q numbers. He also notes that the 500K+ 2020 delivery estimate may "still be in play."
Piper updates estimates for deliveries in 2025 to reach 4M units, and says while deliveries are important, it is the operating margin and software which the analyst expects to drive the value. Full self-driving, FSD, and the subscription plans should help the automaker reach mid 20% operating margins by the end of the 20-year forecast period. Even if the co. sells the car at or below cost in 2030s, the subscription plan could lead to higher margins for the co., Potter added.