Is the latest vehicle to depart from
The iconic Mustang brand is an all-electric, sporty crossover vehicle. And this could be bad news for Tesla.
Mach-E began shipping late in 2020. JPMorgan analyst Ryan Brinkman Trial drove the car on Thursday, preferring more than what it saw. If traditional auto manufacturers start manufacturing desirable electric vehicles, this could pose a considerable risk
Which until now has largely dominated that place in the US.
After driving a car
(Ticker: F) Labels an SUV-Brinkman “fully impressed by Mach-E, given Tesla’s negative impact to sky-high valuations.” The car offers three driving modes: Whisper, Engage, and Belgaum. Each one provides more aggressive acceleration than the last.
The Mac-E compares most closely to a Tesla (TSLA) Model Y. “We do not argue that one vehicle is superior to another,” Brinkman writes. But he points out that Mach-E is still eligible for a federal tax credit of $ 7,500. Tesla still sold several cars to qualify for that special purchase subsidy.
His widespread point is that the Mach-E is a good car, comparable to the Tesla. It is not for some car buyers, at this point, many might say of electric-vehicle offerings.
Tesla can eat into EVS Tesla’s valuations better than competitors. Tesla trades for 2021 sales more than 17 times.
And other traditional auto makers trade for a portion of that multi. The car industry is not just used for such growth stock multiples.
Brinkman, for his part, is a notable Tesla bear with one of the lowest price targets on Wall Street. He sells the shares and his price target is just $ 105 per share. Tesla stock has traded more than that amount this week alone and around $ 880 on Friday.
Share hold. His price target for that share is $ 10.
Baron’s Recently writing positively about the auto maker, there is a bit more speed on Ford than Brinkman, believing that the new lead will lead to lower costs and more streamlined vehicle development. More EVs are also needed, such as Mach-E.
Since this article appeared in late November, Ford stock is down 1%.
Dow Jones Industrial Average,
For comparison, they are up to 5% and 4% respectively.
To say that Tesla stock is not at risk of new competition is a silence. Tesla shares are up 50% since the end of November. Better-than-expected deliveries and analyst upgrades have helped propel Tesla stock. The shares gained about 740% in 2020. The shares date about 25% of the year.
On Friday, Ford stock dropped 0.6%. Tesla shares jumped 7.8%, closing at a new all-time high. Investors prefer EV stock, no matter the time frame. Ford stock fell about 6% in 2020.
Baron’s Tesla did not raise stock, or pend. Right now, a third of analysts cover Tesla stock rate share buy. The average buy-rating ratio for the stock in the Dow is around 57%. This is slightly better than Ford: roughly 22% of analysts buying Ford stock rate shares. He has yet to buy under the leadership of new CEO Jim Farley.
Write Al Root at [email protected]