Jefferies said in its upgrade of the stock that it thinks the company's earnings and free cash flow will be supported by "better productivity.
"with $650PT as the only auto OEM 1) legacy-free, 2) engaged in a +ve EV sum-game, 3) ~doubling market coverage with Model Y and 4) leading the industry's technological transformation. US demand at risk near term from low gas prices but EVs mandated elsewhere and storage critical. Post est. cut , we see Tesla growing volume 25+%, with earnings and FCF supported by better productivity, stable ASPs and ZEV income.
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