Analysts at Jefferies said in a research note that they maintained their “buy” rating on Tesla (NASDAQ:TSLA) and raised their price target to $230 from $180. The analyst said Tesla’s investor day last week showed that the company remains largely a “Day 1” operating model.
The analyst noted that no new product launches do not mean a significant delay in profit growth for Tesla. Jefferies believes that Tesla’s further expansion of Model 3 and Model Y sales through dynamic pricing may limit the range of earnings the company will achieve in 2023 and 2024, but it will be very favorable for its free cash flow and return on invested capital. Jefferies raised Tesla’s operating income forecasts for 2023 and 2024 by 10% and 8%, respectively, and its first quarter is expected to be the trough of Tesla’s earnings.