I can't get enough of this story of Tesla's (TSLA) downfall!
So I'm back with new research on Tesla from Deutsche Bank auto analyst Emmanuel Rosner (see 6am post below). I loved this title for his section on Tesla. “We need to be clear about the future direction of the company.”
That's exactly right, and most people on the street would agree.
Rosner's comments below go a long way toward explaining why Tesla stock has soared.
“Perhaps most importantly, we see the recent spate of Tesla news as potentially changing the theory for investors, which makes it particularly bearish as there are still many questions unanswered. It may be too early to tell if this is the case, or if it's just neutral.At this point, it's unclear whether and when we'll see a drivable version of the Model 2. Unfortunately, we expect Tesla to have to comment on how far along it is and what the realistic timeline for deployment will be given the significant technical and regulatory hurdles ahead. , if Tesla confirms that its new focus on robotaxis will come at the expense of the Model 2, the stock will be significantly riskier, eliminating the primary reason many shareholders currently own the stock. More importantly, we think this change in strategy also has future upside related to Tesla's cracking the code on fully self-driving, which represents significant technical and regulatory challenges. .
“Overall, we are waiting for clarity from Tesla on a change in strategy. If robotaxis are accelerated without a change in focus or timeline for Model 2, this could mean This could be perceived as a positive signal of confidence and could potentially increase. However, if Model 2 is delayed or canceled, we see new execution risks for Tesla. We would view that as a complete theory change as we are concerned about the profile and believe there is considerable downside risk to earnings projections beyond 2026.The stock has a potentially painful ownership base. Changes will need to go through, with investors focusing on Tesla's EV volume dominance and cost advantage, potentially throwing in the towel, and ultimately giving way to AI/technology investors looking at a much longer horizon. It will be.”
