2024-02-14 11:07:20 ET
Summary
- Tesla, Inc.'s EV production forecast has been adjusted due to the launch of a new crossover model, Redwood.
- The Redwood model is expected to be popular due to its low cost and practical design, potentially impacting sales of the 3/Y models.
- Concerns arise from competition in the Chinese market and a slowdown in supply growth for Tesla.
Investment thesis
We have covered Tesla, Inc. ( TSLA ) before, and in this report, we present the adjustments we have made to our forecast, in particular taking into account the downward revision of the electric vehicle ((EV)) production forecast due to the intention to launch a new crossover model codenamed Redwood. This move requires a reallocation of Tesla's energies to the detriment of ramping up deliveries of its flagship 3/Y models. However, we expect Tesla’s EV deliveries CAGR to be above the expected market average of 21% YoY (at 23% YoY), but below our previous forecast....
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For further details see:
Tesla: Waiting For The 'Redwood'