Tesla has been awarded a license to import its own cars into Israel, set up its own service centers and train mechanics to maintain its cars. According to Globes, this is the first time that a license of this type has been granted as previously, representatives or agencies would import cars on the manufacturer’s behalf.
The Ministry of Transport announced yesterday that Tesla (TSLA) has been granted approval from the Vehicle Department to import its Model 3, Model S and Model X vehicles after fulfilling the requirements according to European standards.
The Minister of Transport, Miri Regev, said, “This is part of the comprehensive reform that the Ministry of Transport is promoting in the vehicle sector in order to expand the importation of vehicles to Israel and increase competition in the field.”
Globes has reported that Avner Flor, Head of the Motor Vehicles Division, has been spending a lot of time learning about the Tesla models’ unique technological capabilities. The three models are environmentally friendly, with zero emissions and have advanced safety systems including an “auto-pilot” feature, which Israeli’s will not be allowed to use on the roads.
Flor said, “The entry of Tesla into the Israeli market represents an additional step in efforts that the Ministry of Transport is leading for the entry of autonomous cars into Israel.” (See TSLA stock analysis on TipRanks)
Morgan Stanley analyst Adam Jonas reiterated his Buy rating on Tesla two days ago and raised his price target from $540 to $810. This implies upside potential of around 7% from current levels.
Jonas believes that Tesla is still the best positioned EV company and that the lack of environmental liabilities that burden Tesla’s competitors can unlock recurring mobility services revenue faster and more profitably than the competition.
Analysts on the Street are a little more cautious, with the consensus among 25 analysts being a Hold (7 Buys, 11 Holds and 7 Sells). The average price target of $479.13 implies downside potential of around 37% over the next 12 months.
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