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• Analyst sees higher truck traffic at Tesla’s Gigafactory in California
• Tesla should continue to grow in the second quarter
• Tesla stock affected by tech sell-off
Aerial photos can reveal a lot about a company’s location. The photos document the lifelines of a company by revealing the number of deliveries and deliveries to the production sites. One analyst taking advantage of this information is Tesla expert Trip Chowdhry of Global Equities Research. His latest observations on the Freemont, Calif., Giga-Factory give Tesla bulls another boost.
Analyst sees 20 percent more trucks at Giga-Factory in California
Chowdry expects that “May 2022 will be characterized by extremely strong production numbers, shipments and deliveries” for Tesla, as “CleanTechnica” quotes the analyst. Aerial photos of the Giga Factory in Freemont form the basis of his argument. Photos he reviewed showed an increase in the number of trucks by at least 20 percent compared to the previous quarter, Chowdry said. “Teslarati” estimates that a total of 600,000 cars could leave the Tesla plant in Freemont this year, which would correspond to 150,000 vehicles per quarter – and the trend is obviously rising.
Chowdhry: Tesla’s second quarter of 2022 will be ‘monstrous’
Chowdhry concludes from the photos that the March-June quarter will be one of “monstrous” success for Tesla. Demand remains consistently high, and Tesla is managing to ramp up production at its factories despite global supply bottlenecks. Production started in Texas and Brandenburg that year. In addition, the huge production factory in Shanghai, which opened in 2019, can now gradually start production again after weeks of being closed due to China’s zero-COVID policy. “Teslarati” suspects that Tesla could at least partially make up for the deficit caused by the Shanghai lockdown by increasing production output in Freemont.
With all of these positive views, it’s no wonder Chowdhry is extremely bullish on Tesla’s future: His price target of $2,300 implies more than 210 percent upside potential for Tesla stock.
Tesla stock can’t escape the tech sell-off
Tesla’s latest quarterly figures have already exceeded analysts’ expectations. Tesla CEO Elon Musk announced an increase in sales to 18.8 billion US dollars – 81 percent more than in the same quarter last year. Tesla was even able to increase profits by a whopping 658 percent to $3.3 billion.
Despite these strong numbers, Tesla stock has not escaped the tech sell-off of the past few weeks. The gradual increase in the US key interest rate by the Federal Reserve is hurting tech highflyers in particular, whose profits will only become apparent – if at all – in the distant future. Although Tesla can only be classified in this group to a limited extent thanks to its high profitability, the current price-earnings ratio of the electric car manufacturer is still well over 100 and therefore very high.
In addition, Musk’s sale of Tesla shares in the run-up to his planned Twitter purchase caused concern among shareholders. In this mixed situation, Tesla shares got under the wheels: Since the record high of November 4, 2021 at 1,243.49 US dollars, Tesla shares have lost almost 41 percent and are currently quoted at 734.00 US dollars (as of: closing price of May 11, 2022). However, the car company was able to hold its own much better than other tech giants such as Netflix or the Facebook parent Meta Platforms, whose weak outlook was punished with enormous price losses.
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