Tesla Inc. bull and Financial expert Gary Black addressed investor concerns regarding the future of Tesla Inc. TSLA stock ahead of the company’s anticipated earnings call.
What Happened: On Wednesday, Black posted on X that the outcome of Tesla’s stock next week is uncertain and heavily relies on how CEO Elon Musk presents the timeline for the much-anticipated $25K compact vehicle. This model is projected to account for half of Tesla’s long-term volume as the company broadens its total addressable market.
“Short answer is we don't know. Much depends on how [Elon Musk] frames timing of the $25K compact, which represents about 50% of most analysts' TSLA long-term volume as TSLA expands its TAM to the mass segment,” he wrote.
Black referenced Musk’s comments from the last earnings call, where Musk mentioned that Tesla was progressing on its “next-generation low-class vehicle” and anticipated starting production in the latter half of the following year. Black expects the $25K compact’s production to commence in 2026, despite the prioritization of the robotaxi project.
See Also: What’s Going On With Rivian Automotive Shares Today?
Why It Matters: Recently, Musk announced the elimination of inventory discounts to simplify Tesla’s complex sales system. This move aims to streamline operations amid a backdrop of reports suggesting that Tesla has paused the development of its affordable vehicle, internally named NV9.
Contrasting the uncertain news, some analysts remain optimistic about Tesla’s prospects. CANACCORD Genuity analyst George Gianarikas, for instance, reaffirmed his bullish stance despite the surrounding negativity. Gianarikas described the extreme bipolarity in perceptions of Tesla, with headlines often swinging between extremes.
Meanwhile, Tesla shares settled lower for a third session on a trot on Tuesday amid worries over a potentially dismal quarter and also rumors of a strategic shift in its product pipeline plans. The stock closed at $157.11, indicating a drop of 2.71%, according to Benzinga Pro.
Undeterred by the predicament, Ark Invest run by Tesla bull Cathie Wood was a buyer of the weakness. Ark, through its ARK Innovation ETF, ARK Autonomous Technology & Robotics ETF and ARK Next Generation Internet ETF, bought 20,683 shares of Tesla on Monday valued at $3.25 million
Read Next: Amid Dogecoin Crash, 374 Million DOGE Moved From Robinhood To Unknown Wallet
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
