Tesla stock price target cut to $800 at Daiwa, Shanghai lockdown impact estimated at over 100,000 EVs By Investing.com
© Reuters. Tesla (TSLA) stock price target cut to $800 at Daiwa, impact of Shanghai lockdown estimated at over 100,000 EVs
By Senad Karaahmetovic
Daiwa Securities analyst Jairam Nathan cut the price target for Tesla shares (NASDAQ:) to $800.00 per share from $1,150.00 to reflect lockdowns in Shanghai and blockchain issues. procurement impacting the ramp-up of the Austin and Berlin plants.
The reduced price target also reflects lower deliveries in 2022 of 1.2 million electric vehicle (EV) units, from 1.4 million previously. The analyst predicts that Tesla lost over 100,000 units in Shanghai and another 80,000 units in Austin/Berlin.
As such, the impact of Shanghai “must have a significant impact on margins and earnings,” Nathan told clients in a note.
Additionally, Nathan says the reduced price target reflects “concerns about a) Tesla hitting its 50% volume growth target in 2022; and b) any negative impact of the proposed takeover of Twitter by Elon Musk (NYSE:), either on the management of Tesla or on the TSLA shares of a possible divestment.
Still, Nathan remains bullish on Tesla.
“The shutdowns in China have not dampened demand for electric vehicles, as evidenced by the 34% year-on-year increase in BEV sales in April. Overall passenger vehicle sales were down 35% year-on-year The rise in BEV sales is despite Tesla’s negligible contribution during the period.BEV penetration in April was 22% compared to 17% in February.In Europe, alternatively powered vehicles, including BEVs, PHEVs and HEVs, accounted for 50% of sales in 1Q:22, with BEVs accounting for 10% of sales.Charts 1 and 2 show the growth in EV penetration in the two regions,” the report concluded. ‘analyst.