๐ 3 Catalysts that Could Revitalize Teslaโs Stock ๐
Tesla (TSLA) shares havenโt been performing as well as expected in 2021. However, there are three possible catalysts that could renew investor confidence in the company and boost stock prices. Canaccord Genuity LLC Managing Director George Gianarikas presented his analysis to Yahoo Finance:
1๏ธโฃ Ramp of the Next Generation Vehicle:
Tesla has been working on producing a new type of vehicle, dubbed the Next Generation vehicle (NGV) for several years. This could be the companyโs biggest release since the Model 3, sparking new excitement and increasing potential for profit. If Tesla manages to successfully ramp production, investors may gain confidence in the companyโs ability to continue growing.
2๏ธโฃ Improved Margins:
Teslaโs financials need improvement before the companyโs stock can really take off. One way to improve margins is to increase the level of FSD (full self-driving) penetration. Tesla has developed its own AI technology, and leveraging these improvements could bolster margins and therefore boost stock prices.
3๏ธโฃ Growth in Energy Storage:
Teslaโs energy storage business has been steadily growing, but not quite at the level of its automotive division. Continued growth in this sector could make up for any financial losses experienced in other areas.
๐ Expansion of Energy Business:
Tesla has already begun working on expansion in its energy sector, including new solar projects and the development of a virtual power plant (VPP). This will allow Tesla to reach a whole new consumer base, and increase overall revenue.
๐จโ๐ผ Strong Leadership:
Elon Musk remains one of the most dynamic leaders in not just auto, but also tech. His presence and innovation continue to captivate investors, adding value to the Tesla brand and increasing the likelihood of success.
๐ก Cutting-Edge Innovation:
Teslaโs focus on advancing EV technology and improving the driving experience continues to set the company apart. Innovation and market disruption add value and increase the chances of future growth.
๐ Increased EV Adoption:
The public is becoming increasingly accepting of electric vehicles. As demand for EVs rises, so will the value of Teslaโs core business.
In conclusion, Tesla has three potential catalysts to revitalize its stock: ramp of NGV, improved margins, and continued growth in energy storage. In addition, expansion of the energy business, strong leadership, cutting-edge innovation, and increased EV adoption all bode well for the companyโs future success.
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