Tesla Moat

2020-11-06 05:42:54

After upgrading Tesla’s (TSLA) economic moat rating to narrow from none and accounting for good third-quarter results, we have raised our fair value estimate to $319 per share from $195. About 41% of the increase is from the moat upgrade, while nearly all the rest is from increasing our estimate of total vehicles delivered through 2029 by about 37% to 22.7 million. This change leads to more scale and an increase in our midcycle operating margin to 12% from 11%.