From the get-go, Tesla’s (TSLA) mission has been to stand out from the crowd; throughout the years, it has continued to do so in various ways. For one, obviously, it is a pioneer in the field of electric vehicles and a leader in electric vehicle battery technology. There are also few, if any, CEOs as magnetic as Elon Musk.
Other OEMs are also constantly playing catch up with Tesla’s innovations, said Canaccord analyst Jed Dorsheimer following last week’s launch of Tesla’s fastest vehicle-to-date, the Model S Plaid.
“While others are establishing battery supply chains, Tesla is innovating past the battery,” the 5-star analyst claimed. “First demonstrated with the inaugural use of SiC in their traction inverter, and now with electric motor design. This is a product of Tesla’s culture, and places them further ahead on the innovation curve compared to legacy OEM competitors.”
This “system level approach” has now turned its gaze toward motors. To allow for improved strength to weight ratio required to stop the motor from pulling itself apart at 20,000 rpm, the new motor is carbon wrapped, amounting to an industry first. And to provide a more efficient electromagnetic field and sustain tighter gaps at higher rpm, the company has designed and constructed a machine that can wind the copper rotors at much higher tension. Dorsheimer expects this will lead to “industry-wide improvements in motor design.”
However, while Dorsheimer evidently thinks highly of Tesla, the fact it will now not offer the Model S Plaid Plus – rumored to be the first model to boast the new 4680 cell design – suggests the new cell format “isn’t ready for production just yet, and cell production capacity constraints for energy storage products like Powerwall remain.”
Throw into the mix inflation-related macro, near-term uncertainty and Fed policy “causing a sector rotation out of growth and into value names,” and Dorsheimer is driven to reduce his Tesla price target from $974 to $812. There’s still room for gains of ~35% from current levels, while the analyst’s rating stays a Buy. (To watch Dorsheimer’s track record, click here)
Overall, Tesla remains a polarizing name on Wall Street, reflected in a wide array of opinions from the experts. Based on 9 Buys, 6 Holds and 7 Sells, the analyst consensus rates the stock a Hold. The forecast is for 12-month gains of a modest 3.5%, given the average price target currently stands at $620.70. (See Tesla stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
