According to RBC Capital Markets, Tesla will be able to maintain its leadership position in electric vehicles throughout the decade. Analyst Joseph Spak upgraded Tesla to outperform the market, saying in a note to customers on Sunday evening that the electric automaker should be able to outperform competitors in the long run because of its supply chain investments. “As EVs enter their third phase (everyone has EVs) in the mid to later part of the decade, we believe that being able to deliver EVs will depend on the supply chain,” said Spock. wrote. “While TSLA is fairly secretive about the deals it has made for the supply of raw materials, speaking to contacts we believe they have done more than other OEMs. The initial focus of the company is vertical integration (not just battery/raw Goods but also on motors, cms, software) are likely to be paid.” In the near term, expectations have plummeted significantly for Tesla to potentially beat them and boost the stock. “We believe Buyside expects a ~250k print, effectively in line with our new 249k forecast. With investors primed for short deliveries, we believe 2Q22 could surprise margin upside is,” Spak wrote. Tesla shares are down 34% to date, as investors turn away from riskier assets. Tesla has also been hurt by the Covid shutdown in China, a key market for the automaker for both productions and sales. RBC lowered its price target on Tesla from $1,175 to $1,100. The new target is up about 58% from where the stock closed on Friday. — CNBC’s Michael Bloom contributed to this report.
