- Tesla has rallied 77% since my bullish call, driven by strong fundamentals, and remains a ‘Strong Buy’ due to multiple positive catalysts.
- The upcoming budget Model Q, priced under $30,000 after-tax credits, is expected to significantly expand Tesla’s market reach and compete with top-selling vehicles like the Toyota Corolla.
- Tesla’s diversified ventures in energy and AI, along with stable legacy models and the promising Cybertruck, further justify its attractive valuation and strong growth prospects.
Introduction
I feel good because Tesla (NASDAQ:TSLA) has rallied by 77% since my bullish call on September 10. I think that the rally was fueled by robust fundamental factors and there is still more potential for the business to demonstrate further expansion. The company remains at the forefront of the EV revolution, and the expected budget Model Q release next year will extremely likely help the company to significantly expand its reach. The Cybertruck is expanding its footprint rapidly, while market positions of legacy models like Y and 3 remain stable as table. Let us also not forget that TSLA is not a purely automotive player. There are robust positive developments in the Energy segment and the company’s AI endeavors. The upside potential is not as wide as it was in September, but my valuation analysis suggests that TSLA is still attractively valued. I believe that all these reasons are strong enough to make me reiterate a ‘Strong buy’ recommendation.
Fundamental Analysis
One of the most exciting 2025 catalysts that I see is the anticipated release of the budget Model Q. This is a sub-$30,000 vehicle after-tax credits, and expansion to this pricing segment cannot be underestimated. Model Q will become the direct competitor of a car that has consistently been among the world’s best-selling vehicles since the 1970s. Of course, I am talking about Toyota Corolla, the legendary model that surpassed total deliveries of 50 million over twelve generations.
READ FULL ARTICLE HERE!
