Tesla: 4680 Battery On Cybertrucks Could Be A Big Deal
Summary
- I reiterate a “Strong Buy” rating for Tesla with a one-year target price of $305 per share, driven by market recovery and innovative battery technology.
- The Fed's interest rate cut cycle is expected to boost EV market growth, aiding Tesla's automotive business recovery in the second half of FY24.
- Tesla's in-house 4680 battery, especially with dry cathode processing, could significantly enhance margins and drive future growth, starting with Cybertrucks next year.
- Despite restructuring challenges, Tesla's energy and storage segment shows strong growth potential, contributing to an overall 25% revenue growth forecast from FY25 onwards.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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