To The Moon

🌟🌟🌟The latest EV news this week is on $Tesla Motors(TSLA)$  as analysts at Wells Fargo said that Tesla "ain't looking so Magnificent" and it is a " growth company with no growth ".  Tesla's share price has dropped 6.7% this week and it is now down 34% year todate.

Wells Fargo has cut its rating on Tesla to underweight and lowered its price target from USD 200 to USD 125.  The downgrade comes as the overall EV market has cooled and competition has intensified.  This has led Tesla to announce a series of price cuts to boost demand.

However Wedbush's Dan Ives believes that the negative sentiment towards Tesla is overdone.  Another analyst, David Sekera of Morningstar said that the long term growth story for Tesla is still there.   I tend to agree with him.  Tesla is not just an EV company. 

Tesla is also into clean energy battery storage, solar panels.  Tesla has a Supercharger network of 6000 Supercharger stations in Asia Pacific, North America and Europe.  The North American Charging Standard (NACS) is an EV charging connector system developed by Tesla since 2012.  Since then nearly every other EV manufacturer will be equipped with NACS charge port from 2025. 

Tesla is also developing FSD which will enable fully autonomous driving.  The other project that is in the pipeline is Robotics.  Tesla is developing a Humanoid Robot named Optimus which is designed to be a general purpose robot capable of handling tasks that are unsafe, repetitive or tedious for humans. 

Tesla plans new low cost EV in mid 2025 to help it compete with BYD and other EV makers.   The budget Tesla EV will be priced between USD 25,000 to USD 30,000.

According to Tipranks, the average Target price for Tesla is USD 205.22, an upside potential of 25%.  This is based on 35 Wall Street Analysts. 

$BYD COMPANY(01211)$  is the Top EV maker in China with 30.6% market share while Tesla is 3rd with 7.8% in February 2024 according to a ranking released on March 11 2024 by the China Passenger Car Association.   In December 2023, BYD has overtaken Tesla as the Top Global EV seller.  BYD sold 526,000 EVs in Q423 while Tesla sold 485,000.  This is a pivotal achievement as it highlights the ascent of China's growing dominance in the worldwide market for EVs. 

BYD's share price is up 11% this week and is up 0.3% year todate and 5% in 2023.  While Tesla retains its reputation for innovation and premium EVs, BYD's success in delivering a broader range of budget friendly options highlights the evolving dynamics of consumer preferences  and market demands. 

$XIAOMI-W(01810)$  is a new entrant to the EV market as it plans to launch its first EV model - the SU7 on March 28.

The XiaomiSU7 can reach 0 to 100 km/hr in 5.28 seconds while the premium model XiaomiSU7 Max can go from 0 to 100 km/hr in just 2.78 seconds.  The Top Speed of SU7 is 210 km/hr and SU7 Max is 265 km/hr.  SU7 has a range of 668 km while SU7 Max comes with 800 km range. 

Xiaomi's share price is up 11% this week but down 6% year todate.  In 2023, Xiaomi is up 33%.

$Faraday Future Intelligent Electric Inc.(FFIE)$  had tough week.  Its share price is down 9% today and in the past week it is down 27%.  Faraday Future is now down 83% year todate and a massive 99.9% in 2023.  

On March 11 2024, Faraday and Palantir have entered into a settlement in which Faraday agreed to pay Palantir USD 5 million in 4 quarterly installments in 2024  for the lawsuit that Palantir has filed against Faraday related to the July 12 2021 Master Subscription Agreement. 

Faraday Future stock has been dilutive due to 2 reverse stock splits.  The latest stock split became effective on March 1 2024 where Faraday will effect a 1 for 3 reverse split of its Common stock.   In December 2023, Faraday received a notice from Nasdaq after it failed to meet the listing rules requiring a minimum closing share price of USD 1.00.

Faraday Future's FF91 flagship SUV costs around USD 309,000 which is only affordable for wealthy people.  It  is not easy to sell such a high price EV and Faraday has only sold 10 vehicles since 2023.  As such I am bearish on Faraday Future. 

$Rivian Automotive, Inc.(RIVN)$  share price jumped 3.2% today on news that Piper Sandler upgraded Rivian stock to an overweight rating and increasing its target price to USD 21 per share.  That is a massive upside potential of 90% for Rivian. 

This is because Rivian has 2 SUVs in the works - the R2 and R3 electric hatchback.  68,000 buyers have already pre ordered the new R2 at USD 45,000 each which costs less than Rivian's existing R1T or R1S. 

Rivian will build the R2 at the existing factory in Illinois rather than in its new factory in Georgia.  This will fast track the R2 by 6 months. 

However Rivian is still spending as much as USD 6 billion a year in capital expenditure and has only USD 9.4 billion in cash and USD 4.9 billion in debt.  So I am bearish on Rivian despite the upgrade from Piper Sandler. 

Of all the above EV stocks, I still believe in Tesla as the best EV stock to invest in.  At the last closing price of USD 163.57 versus its 52 weeks high of USD 299.29, Tesla is a bargain.  Tesla is still a profitable company and has lots of exponential growth ahead.  Time and patience are required for Tesla investors to reap a bountiful harvest in the future. 

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