Tesla's stock (TSLA) broke almost 10% to the highest ever Monday, exceeding $ 500 per share for the first time.
The sharp progress in the stock of the electric car arose following a call from Colin Rusch, Oppenheimer's analyst, who gave Tesla its price target to $ 612 shares, up from $ 385 previously and represents one of the highest on Wall Street.
The basic principle of a Rusch bull thesis was rooted in a conviction that Tesla is far ahead of its competitors in autonomous innovation.
The information gathered from hundreds of thousands of vehicles on the road has enabled Tesla to create a database for future developments, said Rusch.
“600,000 cars are on the road collecting data from all their sensor rooms, collecting corner cases; We consider – you know, margins, the abnormal circumstances that a car might have onto the road, ”Rusch told The Ticker from Yahoo Finance Monday. “And we think the details, you know, are going to help them redesign their autonomous system.”
Tesla had previously used data to improve the existing features such as Smart Summon, which was used by CEO Elon Musk in October and used more than a million times.
“This shows the value of having a huge fleet because it allows us to collect these corner scenarios and learn from them and learn to use fleet and be better, just as Navigate on Autopilot on the roadway did. , ”Musk said during an analysis of the third quarter Tesla results in October. “This is just the beginning and we are gathering more detail and getting better with Autopilot and Full Self-Driving functionality.”
Rusch, of his own, agreed with the benefits that came from Tesla.
“They have 600,000 cars compared to the next competitor between 600 and 1000 cars collecting data,” said Rusch. “We see this as an important advantage.”
Threat threat framework '
Rusch also mentioned the speed at which Tesla developed China Gigafactory as a factor in its bullish insight into the stock.
“The first shovel entering the vehicle to the first vehicle was less than a year. We think that many of the automations are aware that there is a threat, not just from a technological point of view, but from a manufacturing perspective, 'said Rusch.
That time went fast – from breaking ground on a piece of land in Shanghai in January 2019 to deliver its first vehicles built in China earlier this month – the production woes underwent a major recovery. Tesla suffered a few years before her large factory Fremont, California.
While car sales in China have been slowed overall, analysts held the view that Tesla had a quick win over the factory online. And this milestone contributed to many positive developments for the company: Just a day before delivery of its first car, Tesla reported that 112,000 vehicles were delivered from the fourth quarter of 2019, up 23% in the previous year.
“We think they are learning from those mistakes and making some real changes to their processes,” Rusch said.
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