The electric carmaker's action started the year on a high note. The market capitalization of the Elon Musk group now approaches that, combined, of Ford and General Motors. Is it too much?
The Californian automaker entered 2020 as it ended 2019: with an action boosted on the stock market and which continues to chain the historic highs.
In early January, the title for the first time crossed in session the cap of 450 dollars, bringing the capitalization of the Palo Alto group to more than 80 billion dollars, almost almost as much as the cumulative valuations of GM and Ford (90 billion to those two). The stock has jumped 140% since last June.
3,000 cars per week
The summer of 2019 marked a pivotal period during which the group completed the "gigafactory" in Shanghai, its third giant site for the construction of batteries and assembly of cars.
Since then, the factory has entered production to reach a rate of 3,000 vehicles per week.
For Tesla, the issue is decisive. A moment weakened by the excesses of its emblematic boss – Elon Musk – the group now convinces investors that it is capable of keeping the promises of growth essential to the preservation of demanding stock market ratios.
The manufacturer beat its record for deliveries in 2019 with 367,500 electric cars sold (+ 50% year-on-year), a level in line with its forecasts (360,000 to 400,000), but higher than analysts' expectations.
Better, by acquiring a more international industrial base – today Shanghai, tomorrow Berlin – which brings it closer to the two key markets that are China and Europe, it gives itself the means to improve its operating margin by reducing including its logistics costs.
The action is not given
Therefore, even if the share is expensive at 38 times the net profit expected in 2021 – the first profitable year since 2014? – and 19 times the cash flow at this maturity, the share retains its place in the portfolio.
We’re raising our target from $ 425 to $ 490 without returning to the purchase.
Keep the Tesla action. (New York-TSLA) Course objective: 490 dollars.
Investment profile: dynamic.
Next meeting: the annual accounts, end of January.