Tesla is in the spotlight amid late-quarter production blitz
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RBC Capital Markets upgraded Tesla (NASDAQ:TSLA) to an Outperform rating from Market Perform off a positive view of the electric vehicle maker's long-term positioning.
Analyst Joseph Spak and team think that as EVs enter their 3rd phase in the mid-to-later part of the decade, being able to deliver EVs will increasingly depend on supply chain , an area where Tesla (TSLA) may have a long-lasting advantage.
"While TSLA is fairly secretive about the deals they have cut for supply of raw materials, in talking to contacts we believe they have done more than other OEMs. The companyâs early focus on vertical integration (not just batteries/raw materials but also motors, semis, software) is likely to pay off."
In the short term, RBC thinks Tesla (TSLA) will deliver about 250K vehicles in Q2 while topping margin expectations. The firm assigned a price target of $1,100 to TSLA.
Over the weekend, a leaked e-mail from Elon Musk indicated that Q2 was a "very tough quarter" due to supply chain and production challenges in China and asked employees to rally hard to recover with a late quarter push.
Shares of Tesla (TSLA) fell 2.77% premarket on Monday to $677.39.
Tesla (TSLA) filed for a 3-for-1 stock split late on Friday.