Yesterday Elon Musk surprised everyone in an email to his employees in which he warned them that either they were able to bring costs under control, or the value of the shares would fall sharply. Some statements that many feared would lead to a loss of confidence in the brand’s titles. But not only has the valuation not gone down, but it has also gone up.
This letter’s origin is the brand’s publication that its net profit is very low, just 1%. They would have to correct so as not to affect a stock price due to investors’ expectations of future earnings rather than recent results.
According to Musk, “Investors are giving us a lot of confidence about future returns, but if, at some point, they conclude that this is not going to happen, our stocks will immediately crush like a souffle under a mallet.”
Now just 24 hours after Musk’s statements, the investment bank Goldman Sachs has published an article where it puts the good prospects for Tesla shares on the table, which has given a target valuation of $785.
It has also changed its classification from hold to buy, a symptom of the confidence in the shares of a Tesla that has accumulated an increase in the value of 580% so far this year.
The explanation for this optimism is that the estimates of future production and sales are very high. According to Goldman analysts, if Tesla manages to maintain its market share of the electric car at 25%, this would mean that it will reach annual sales of 15 million units by 2040, or 20 million units in a more optimistic scenario.
They have also added the investment bank, which helps the costs of components such as batteries that are falling faster than expected. Something that will blur the price difference between electric cars and combustion cars in a short period of time.
Something that will especially benefit a Tesla that is not only growing unstoppably in vehicle production capacity but is also doing so in the manufacture of as many components as possible internally, such as batteries.