Buy Tesla Stock Because $300 Is Around the Corner, Says Wedbush
Just two weeks after Tesla (NASDAQ:TSLA) and Ford (NYSE:F) announced a partnership that will allow Ford EVs to have access to Tesla's charging network, another of the Motor City giants announced a similar deal.
Last week, General Motors said it will integrate the North American Charging Standard (NACS) connector design into its EVs, which will allow it to use Tesla's Supercharger Network.
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Which charging companies now support NACS?
Beginning in 2024, GM drivers will be able to use Tesla's network with the help of an adapter. By the following year, GM expects its EVs to come with a NACs inlet, providing them with direct access to 12,000+ Tesla Superchargers spread across North America. The deal will provide GM EV drivers with more options on top of the 134,000+ chargers available right now via the company's Ultium Charge 360 initiative and mobile apps.
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What are the potential long-term implications of the shift towards NACS in North America?
Wedbush analyst Daniel Ives applauds GM's thinking here, saying this is a "smart partnership by GM and Barra as the Detroit stalwart is laying the foundation for a successful EV transformation over the next decade."
A smart move by GM, notes Ives, yet one that shows Elon Musk and Tesla are "playing chess while other automakers are playing checkers in this broader EV green tidal wave."
There is a "large monetization opportunity" for Tesla here, which over the next few years, the Ford and GM deals combined could add an extra $3 billion to services EV charging revenue.
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How could Tesla's deal with GM and Ford impact the wider EV industry?
This latest development aside, there are other positive elements coming together for the EV leader. Ives expects Tesla's margins issue to trough over the next 1-2 quarters and "ramp back up into FY24." Furthermore, the move to 4680 battery cell production adds another ace to the pack, while the Cybertruck's launch later this year is set to provide further growth.
"In a nutshell," the 5-star analyst wrapped up, "Tesla is in a massive position of strength after building its EV castle and now is set to further monetize its success."
With all this goodness to come, Ives thinks a price target hike is due, and bumped the figure up from $215 to $300, suggesting the shares will post additional growth of 23% in the year ahead. (To watch Ives' track record, click here)
Most analysts join Ives in the bull camp - 15 others, to be precise - but with 10 additional Holds and 4 Sells, the stock claims a Moderate Buy consensus rating. Price target wise, given the strong year-to-date performance (shares are up 109%), most think the stock is due a cool down period; as such, the $209.29 average target implies shares are overvalued by 18.5%. (See Tesla stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.