Tesla Gets Optimistic Outlook from Deutsche Bank, as It Is Best Placed to Face any Softness in Macro Conditions

Deutsche Bank analysts maintained their Buy rating and $355 per share price target on Tesla TSLA in a note Monday. They recommended the company’s shares, indicating that Tesla is best placed to face any softness in macro conditions.

After the DB AutoTech conference, Deutsche Bank analysts told investors that Tesla “would not comment on current demand conditions or its pricing strategy,” according to investing.com. However, they indicated that the company is best placed to face any softness in macro conditions based on its best cost structure, superior margins, and often demonstrated operational nimbleness and flexibility.

They added that Tesla expects significant benefits from the Inflation Reduction Act, including a full $7,500 consumer tax credit and large direct incentives for U.S. battery manufacturing.

“Tesla expects IRA to constitute a meaningful tailwind for the company, starting January 1. The company believes most of its US. vehicles should qualify for the full $7,500 consumer tax credit, and Tesla will also receive large incentives from its battery manufacturing in the US The manufacturing piece should amount to $45/kWh for the battery cells and packs made in-house (10 GWh capacity from pilot line in Fremont, and ramping up Austin capacity as fast as possible), and we think a piece of it could be shared with Panasonic for the batteries made by the collaboration in Nevada (there's no JV),” the analysts wrote.

“Tesla is particularly focused on its 'game-changing' next-generation platform which, in our view, should support multiple other vehicles and segments, as well as robotaxis, and targeting $20k COGS/vehicle; development is advanced, and targeted SOP is 2024,” the analysts added.

H/t @SawyerMerritt/Twitter

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