Analysts at Wedbush raised their price target on Tesla (NASDAQ:TSLA) to $300 from $215, reiterated an "Outperform" rating, and added the shares to the "Wedbush Best Ideas List", following last night's announcement of the company's collaboration with General Motors (NYSE:GM), allowing GM-built electric vehicles to use Tesla's supercharger network.
In their latest note on the EV giant, the analysts argue that with the GM deal now in place and a similar deal with Ford (NYSE:F) announced a few weeks prior, "Tesla now essentially owns the charging network ecosystem domestically." They see the development as "a large monetization opportunity for the company in its supercharger story," as both GM and Ford will require access to Tesla's charging infrastructure "for success of its EV strategy and broader EV ambitions."
Charging deals aside, the analysts also believe "Tesla is seeing steady demand post price cuts in the US and China with margins now in stabilization mode that should bottom over the next 1-2 quarters." They thus estimate the company is "on track to hits its 1.8 million unit delivery bogey for the year and should be able to do it with a margin story that troughs over the next 1-2 quarters and ramps back up into FY24."
As such, the analysts argue "with its supercharger network, energy business, AI driven autonomous path, unmatched battery ecosystem, and increased production scale/scope globally," Tesla has now further solidified its position as the undisputed EV leader, and conclude "Musk and Tesla are playing chess while other automakers are playing checkers," as they raise their price target to $300 and add the stock to "Wedbush Best Ideas List."
TSLA is trading over 4% higher in premarket on Friday, extending an over 117% gain YTD.