so Bull vs Bear Controversy Tesla (NASDAQ:) Thursday afternoon hosted by Investing.com and Street Insider.com with GLJ Research analyst Gordon Johnson and co-founder and president of Gerber Kawasaki Wealth and Investment Management. The current health of Tesla and where they believe the stock is headed, according to both CEO and CEO Ross Garber.
In a wide-ranging heated debate, Gerber said he believes Tesla’s bullish case is “more intact than ever”, adding cash on Tesla’s books, an increase in two new gigafactories, and He opened his mouth by pointing out the “total superiority” of the battery. technology and charging.
“Tesla is the leader in global EV sales, with over 1.3 million units sold and probably growing to over 2 million units this year,” Gerber asserts.
“Currently, price cuts are driving prices down to a whole new level of consumer affordability for cars, and demand has surged in recent days and weeks,” he added, recent data show. It was made clear that After the price reduction, the inventory has decreased sharply.
Additionally, Gerber believes there are so many advantages for the market and industry as EV adoption has increased dramatically and the U.S. still lags behind other markets. said.
“Tesla will be like Apple (NASDAQ:) and will get most of this upside,” Gerber declared, adding that EVs are better than ICE (internal combustion engine) cars. rice field.
Gerber Kawasaki’s president and CEO sees Tesla stock at $150-$200 by the end of the year, but believes it could double to $240 if things go well.
Meanwhile, Johnson sees Tesla stock at a multiple of 6 at an EPS of about $2, so about $12 a share. Analyst says Gerber’s allegations “cannot be argued any further”, revealing his firm’s research estimates that all Tesla vehicles will average about $7,250 in price cuts I started by making
“If you look at the profit per unit in the third quarter, it was about $12,797. We only reduced the price by $7,250, so the new implied profit per unit from those price reductions is $5,547,” Johnson said. I will explain. “This is his 56.7% hit on the margin of these markdowns.”
Johnson argues that Tesla needs to increase its sales volume by 167.2% year-over-year in 2023 to return to profit/breakeven. %,” he adds, explaining that in 2023 Tesla “will be around $2.18,” and the current consensus estimate he refers to Tesla’s EPS at $4.20.
“You’re talking about a company that, based on these price cuts, assumes lower earnings in 2022-23 and no more price cuts of just under 50%. That’s a forward multiple of 58.2 today. We’re going to double that,” Johnson said.
“This is just a car company,” said a GLJ analyst. “This is no longer a growth company.”