By Sam Boughedda
Morgan Stanley analysts said in their Tesla (NASDAQ:TSLA) Investor Day preview that they look for Tesla to unveil a suite of technologies required for the mass adoption of EVs at far lower price points.
The analysts, who have an Overweight rating and a $220 price target on the stock, said this is a "critical component of Master Plan 3." Elon Musk said earlier this month that the plan will be presented on March 1 and is the "path to a fully sustainable energy future for Earth."
"It is very possible that Tesla's March 1st investor day may have greater significance on the market's perception (and ultimately, valuation) for Tesla's EV competitors than for Tesla itself," claimed the analysts.
Meanwhile, speaking on Tesla's recent price cuts, the analysts said that Elon Musk has continually stressed the goal for the electric vehicle giant to become a mass-market manufacturer, introducing the lower price points necessary to have a meaningful impact on the carbon footprint of the global auto installed base.
However, they believe that for this to be possible, Tesla will need to successfully lower the average price of their offerings and ideally cut costs to maintain their industry-leading margins.
"With a stated target of a competitive offering at a $25,000 price point, Tesla will have to make significant progress from their current COGS per vehicle (~$39k in FY22). A re-designed interior of the Model 3 (Project Highland) and the subsequent learnings could be a step in the right direction," they added.