According to Bank of America, Tesla CEO Elon Musk could soon expect an upward trend for his company. Taylor Hill
Tesla shares could rise 35 percent after first-quarter results, according to Bank of America (BofA).
The bank upgraded Tesla shares to “buy,” citing a plan that includes four steps to boost the stock.
“The flurry of reports appears to suggest that risk on the stock is becoming more positive,” BofA said.
After Tesla published a disappointing first quarter earnings report, according to Bank of America (BofA), there is now some positive news for the company. Tesla reported lower-than-expected earnings and revenue for the quarter. However, the company justified this by developing a cost-effective vehicle, the process of which Tesla is currently trying to accelerate. This comes after all concerns that Tesla would abandon a cheaper model altogether to focus on its robotaxi efforts.
The bank believes that Tesla has now overcome a difficult period with a lot of bad news. As long as the company follows its 4-step plan, which includes an affordable vehicle and the creation of a robotaxi network, this should have a positive impact on the stock and provide significant upside potential.
Bank of America analyst John Murphy upgraded Tesla shares to “buy” from “neutral” and reiterated his price target of $220, which represents an upside potential of 35 percent from current price levels.
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4-step plan for Tesla
Here are four moves Murphy says Tesla could take to achieve greatness again and reverse the roughly 35 percent sell-off it has seen since the start of the year.
1. “The launch of new models is happening faster and more efficiently than expected.”
2. “At the Robotaxi event on August 8th, the driving assistant FSD and the next generation platform will be presented.”
3. “Cost savings with a target of $1 billion if layoffs occur during the year.”
4. “Potential licensing of FSD for one or two major equipment suppliers as early as the end of the year.”
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“The combination of all of these factors will not structurally alter the company’s long-term trajectory, although in the short term the flurry of news seems to suggest that the risk to the stock is becoming more positive,” Murphy admits.
Investors are reacting positively to Tesla’s earnings report and its commitment to building an affordable vehicle, with the stock rising despite the missed results rose by up to 14 percent in Wednesday trading.
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Bank of America’s 4-step plan: This is how the Tesla price is rising again
The IMF named the main drivers of the Russian economy
– 2024-04-25 21:32:49
Four factors are helping Russia keep its economy afloat.
As Day.Az reported on Tuesday with reference to Trend, Deputy Director of the IMF Research Department Petya Koeva Brooks said this today during a briefing on the World Economic Outlook report at the IMF Spring Meetings in Washington.
She noted that the first factor is the country’s continued oil exports.
“Secondly, there is a large amount of corporate investment, including from state-owned enterprises. Thirdly, we are also seeing significant resilience in private consumption. And last but not least: government spending. Although there we are seeing a much larger increase in spending, security related and general expenses,” Brooks said.
She noted that the growth rate of the Russian economy is still significantly lower than what it was before the war in Ukraine.
“The Russian economy is expected to continue to face headwinds,” Brooks added.
It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.
Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.
Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.
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The IMF named the main drivers of the Russian economy – 2024-04-25 21:32:49
IOBE: Growth at 2.1% in 2024 – Inflation at 3%
– 2024-04-25 23:08:52
IOBE is in the process of changing its forecasts for the course of the Greek economy in 2024. According to what its head Nikos Vettas said today, he is “lowering” the growth bar to 2.1% and “raising” inflation to 3%.
The big bet for the Greek economy remains the increase in investments, with the IOBE estimating that they will increase this year by 7.8% (from 10.8% before), while the increase in Greek GDP…drops to 2.1%, from 2.4% which is the previous forecast.
Inflation is decelerating to 3% this year, while the immediate previous forecast set the bar at 2.8%, with unemployment continuing to decline but at a slower pace with a tendency to stabilize near 10%. IOBE estimates that this year it will decline to 10.3%. Regarding inflation, Mr. Vettas also referred to the domestic issues that exist, in addition to the international situation.
The challenges
Regarding the challenges for Greece, Mr. Vettas noted that there was a negative surprise from the path of investments in 2023, their increase was considerably lower than the forecasts which affected the growth. Labor market fatigue is evident with the rate of unemployment falling. If the unemployment rate stabilizes at 10% this will coexist with many businesses and industries saying they cannot find workers. There is also a fatigue in the economic climate, according to IOBE.
Fiscal policy challenges remain, despite positive developments. In recent years, the interventionist policy of the state had intensified in all markets, from subsidies such as during the pandemic and interventions in the market due to accuracy.
Positive image
Among the positives of our country, according to Mr. Vetta, is the significant reduction in the country’s lending spread as a result of obtaining the investment grade, but also its better course in relation to the Eurozone, the increase in tourism that allows balancing the balance current account, the good business climate, and the good course of the fiscal, as was seen with the deficit.
Referring to inflation at the eurozone level, the head of the IOBE said that the monetary work done had an effect, but it will continue to remain at the level of 2% for some time.
Beyond that, Mr. Vettas that there is a reduction in the dynamics of the Greek economy, the rate of which however remains higher than the average of the Eurozone, where it is expected to grow by just 0.6% from 0.5% last year. According to Mr. Vetta, this slowdown of the Greek Economy began in the second half of 2023.
As the IOBE points out, the slowdown of the Eurozone economy, the gradual de-escalation of inflation and interest rates, geopolitical instability, fiscal figures and the execution of the revised Recovery and Resilience Plan, are now determining factors for the evolution of GDP in 2024.
The dangers
• Further geopolitical instability and economic uncertainty at regional and international level (war in Ukraine, Middle East, US elections, European Parliament).
• Slower reduction of interest rates in Europe in 2024, especially in an alternative scenario of a large increase in international energy prices.
• High deficit in the external balance, with structural characteristics.
• Labor market: Slower de-escalation of the unemployment rate, partly due to high structural unemployment.
• Progressively tighter fiscal targets. The tax base in Greece remains narrow.
• Loss of competitiveness due to higher m.o. of Eurozone inflation after mid-2023. Persistent inflation in essential goods such as food, higher than a.d. of EZ in 2024.
• High loan-deposit interest rate spread and systematically negative household savings rate.
• Risk of a new flare-up of overdue debts and NPLs, due to rising interest rates and cost of living. An obstacle to the redistribution of resources are bad loans on and off bank balance sheets.
• Investment mix: Investments in Housing/Construction and transport equipment, decrease in other sectors.
Positive prospects
• The acceleration in the implementation of the revised Recovery and Resilience Plan combined with the expansion of its loan arm and REPowerEU, can “unlock” international funds for productive and more long-term investments.
• The reduction of interest rates, if it starts earlier in the middle of the year, will be an opportunity to accelerate investments.
• Bet on the strengthened extroversion of the economy, with a gradual improvement of the external balance.
• Reforms with a medium-term horizon of 2024-2027 may increase productivity which deviates from the average in Europe.
• The reduction of NPLs at the level of the entire economy will free up productive resources for more efficient distribution.
• Significant backlog of construction projects.
Source OT
#IOBE #Growth #Inflation
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https://www.world-today-news.com/iobe-growth-at-2-1-in-2024-inflation-at-3-2024-04-25-230852/