More importantly, there is likely to be a steady ramp in full self-driving software adoption starting in 2030. This, the analyst said, should have a big impact on margins, with EBIT margin eventually exceeding 40%.
Tesla Energy will likely increase from about 6% of revenue currently to about 20%-30% by 2030s, Potter estimates.
Tesla is targeting multi-trillion-dollar markets and there will always be new levers for growth, the analyst said. The company could eventually enter into the HVAC or auto insurance markets, both of which represent hundreds of billions in market-wide revenue, he added. 2020 was a breakout year for TSLA, but in our view, the fireworks aren t over, Potter said.
Tesla Inc (NASDAQ: TSLA) is still the leader among the electric vehicle pack even though the competition in the space is intensifying, according to Wedbush .
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Another Wall Street analyst has initiated coverage of
Tesla Inc (NASDAQ: TSLA) on Wednesday. Like many other analysts and investors, he doesn’t quite know what to make of Tesla at its current valuation.
The Tesla Analyst: Edward Jones analyst Jeff Windau initiated coverage of Tesla with a Hold rating.
The Tesla Thesis: Windau said Tesla is the clear leader in the global electric vehicle market up to this point. The company will soon face a tidal wave of new competition, however, and its $800 billion market cap is already pricing in a tremendous amount of long-term growth and huge successes in ventures outside of auto sales.
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Apple Inc (NASDAQ: AAPL) reportedly venturing into electric vehicles creates a new “bear case” for
Tesla Inc (NASDAQ: TSLA).
The Tesla Analyst: Jonas gave Tesla a Buy-equivalent rating in a note Tuesday and assigned a price target of $540 for the stock, which is almost 15% below the stock’s closing price on Tuesday, as reported by Bloomberg.
Thet Tesla Thesis: “Apple’s potential entry into autos represents perhaps the most credible/formidable bear case for Tesla’s stock that investors have had to consider for some time,” wrote Jonas.
Apple’s foray into vehicles could spell trouble for not only the Elon Musk-led company but also traditional automakers such as