Since rates probably have a lower negative impact on Tesla (TSLA) than on many of his colleagues, the tasks can enable Elon Musk to win market share, Morningstar Energy and Resources -Strategist Seth Goldstein recently told Schwab Network.
Why TSLA is wounded less than many competitors by rates
Tesla assembles all his EVs in the US, while it also produces all its batteries in America, Goldstein reported. On the other hand, the battery cells it imports, together with the cathodes and anodes that get it from abroad, could all be made more expensive by rates, he reported. Moreover, the steel and aluminum it imports will certainly be hit with rates.
In the light of the last points, TSLA will have to increase its prices in response to rates, but it may increase them less than its competitors, which makes it possible to increase its market share, Goldstein claimed.
TSLA deliveries can improve as the year progresses
Because the deliveries of the automaker in China, the US and Europe fell in January and February, the deliveries probably fell in the first quarter versus the same period a year earlier, Goldstein believes. Nevertheless, the strategist expects its deliveries to improve in Q2 after the improved model Y has reached all its markets in March.
And with the automaker that later issues a more affordable EV in 2025, deliveries can further increase in the second half of the year, Goldstein predicted.
Although we recognize the potential of TSLA as an investment, our conviction is convinced that some AI shares have a greater promise to deliver a higher return and to do this within a shorter time frame. If you are looking for an AI share that is just as promising as TSLA acts in less than 5 times his income, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires
Publication: none. This article was originally published on Insider monkey
