Tesla shares rose as much as 10.7% after being praised by Credit Suisse

On February 1, Tesla rose as much as 10.7% during the session after Credit Suisse upgraded its stock rating to “outperform” and the broader market rebounded. Tesla has fallen about 20% in January. Tesla shares have been under pressure since CEO, Elon Musk, claimed on a recent earnings call with analysts that the company would not launch a new model this year. He said the company’s focus will be on expanding production at existing and new factories, developing humanoid robots and driverless technology.


Tesla

Credit Suisse says now is the time to buy Tesla, with a price target of $1,025. Analyst, Dan Levy said in an investment report Monday, “Tesla’s profit margins unexpectedly rose, mainly due to cost-cutting. We believe its high margins are sustainable. For the foreseeable future, Tesla will maintain its lead in electric vehicles”.

The report also states, “Tesla profits to date have come mainly from hardware sales, with a certain contribution from software, especially the full self-driving feature. As Tesla releases more full self-driving features, and ‘unlocking’ more deferred revenue, profit margins will also increase substantially”.

No cheap model this year

Analysts believe that Tesla will be making a huge mistake if it fails to launch some cheap models. According to Guggenheim analyst Ali Faghri, Tesla will lose huge revenue in the next 10 years if it can’t launch a $25,000 model on the market. He added “In the mid-2020s, entry into the low-priced vehicle market will be critical to support Tesla’s growth prospects,”

On Wednesday, Tesla’s CEO Elon Musk dismissed the possibility of launching a $25,000 model this year. He said that the company will focus resources on rolling out fully self-driving technology and ensuring higher prices for the likes of the Model 3 and Model Y. He said “We are not currently developing a $25,000 model, but we will develop it in the future. At present, the most important thing is fully autonomous driving technology.”

Tesla multi-billion-dollar camera module attract bids from Samsung & LG

Tesla’s multi-billion-dollar camera module order is attracting the interest of a number of companies. These companies are currently bidding for the deal and we have the likes of and LG in the long list of bidders. The report out of South Korea claims that the two Korean manufacturing giants are bidding to win orders from Tesla. The report claims that LG Innotek, Samsung Electro-Mechanics, and many other companies are participating in the bidding. The bidding process will be complete in the first quarter of this year.

Tesla camera

According to the reports, the Tesla billion-dollar camera module orders will be used for its Model S, Model X, Model 3, and Model Y. The company will be launching these models soon. Furthermore, camera orders for the production of the electric semi-truck and the electric pickup Cybertruck are available for bidders. These models are not yet in production.

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Via: gizchina.com

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