By Sam Boughedda
Deutsche Bank analysts maintained a Buy rating and $355 per share price target on Tesla (NASDAQ:TSLA) in a note Monday.
Following the DB AutoTech conference meeting, the analysts told investors that Tesla "would not comment on current demand conditions or its pricing strategy" but indicated it 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 a considerable benefit from the Inflation Reduction Act, including full $7,500 consumer tax credit and large direct incentives for its U.S. battery manufacturing.
"Tesla expects IRA to constitute a meaningful tailwind for the company, starting January 1. The company believes most of its U.S. 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.