“For all the competition entering the market we are still awaiting the EV that will be a true competitive threat to Model 3 – especially in the US,” Credit Suisse analyst Dan Levy wrote in a note to investors. “Tesla has a window of opportunity now with a clear competitive lead.”
While a statement like this may be common among Wall Street’s bullish Tesla analysts, Credit Suisse remains one of the company’s skeptics. Credit Suisse has had an underweight rating on Tesla shares since the firm began covering the stock in June, with a $200 price target. That’s more than 40% below the stock’s close on Wednesday at $346.11 a share.
“Yet to the extent Tesla continues to struggle with the basic ‘blocking and tackling’ of the auto business (i.e., manufacturing, delivery logistics, service), it risks not capitalizing on this opportunity,” Levy said.
He believes Tesla will soon face a key test as “the only game in town,” as Ford is expected to announce the Mach-E on Sunday, a line of a Mustang-inspired electric SUVs.
“The launch marks the first real milestone in Ford’s increased emphasis in electrification, and more importantly marks an increased effort by the legacy US automakers to be relevant in electrification,” Levy said.
Ford’s Mach-E will be available in the U.S, Canada and Europe next fall. Credit Suisse estimates the Mach-E will be priced “in the mass luxury range” between $40,000 and $50,000, with an expected 300-mile range.
“Ford’s new BEV should provide a more compelling alternative at the Model 3 price range than the other comps, especially given the performance focus,” Levy said.
Have a nice day and hope this helps you in your trading.