1. On Thursday, shares of Tesla slid roughly 7% after Elon Musk’s “master plan” fell short of expectations at the company’s highly anticipated investor day, which unfolded over the course of four hours on Wednesday.
The presentation did, however, lay out broad plans aimed at making Tesla the largest car company in the world.
By 2030, Tesla is looking to hit 20 million car sales per year.
The announcements were tepid enough that strategists at Vanda Research wrote in a note to clients that this month could see a sell-off for Tesla stock.
Over the last two months, retail investors have piled into shares of the EV-maker, but the weaker investor day could catalyze a reversal, according to Vanda.
“If we assume that much of the retail buying was driven by momentum rather than a strong conviction, a stagnation in performance caused by the lack of new ‘rumors’ to buy, could result in a significant reversal in sentiment, investment flows, and ultimately stock price,” Vanda said.
That said, Zacks Investment Research forecasts 30% upside for Tesla, and that climb could happen in 2023.
The firm gives Musk’s company a $260 price target over the next six to 12 months, which John Blank, chief equity strategist for Zacks, says is “doable.”
“The thing I think we should hear about the Cybertruck is it’s going to put a new factory template in place that we have not seen yet, and that’s what’s taking so long,” Blank said in a CNBC interview.
While Tesla has long been touted as innovative and futuristic over the last decade, Bespoke Investment Group concluded that the company is now actually a normal, boring car maker.
Here’s how they put it:
“With investors and analyst coverage focused on more concrete metrics and timelines, expectations for TSLA are being pushed to behave more like a traditional [original equipment manufacturer] and less like a disruptor.”
In other news:
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10. Salesforce stock has 26% upside, according to Bank of America. The stock Thursday jumped 11% on earnings and BofA raised its price target for Marc Benioff’s tech firm from $200 to $235: “Margin outlook reflects major step toward disciplined growth.”