Normally, a recall is bad news for a vehicle company’s stock. Just ask Ford (F), who has seen no shortage of recalls in the last two years. But electric vehicle giant Tesla (TSLA) can usually address its recalls with software updates. That was not the case with this latest recall, though, which had the potential to be much worse. Tesla investors, though, had no issues with this whatsoever, and sent shares blasting up over 4% in Friday afternoon’s trading.
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Forget margin or options. Here's how the pros trade TSLAThere is an old saying among frugal car buyers, about how they plan to drive their current car until the wheels fall off. For 173 Cybertruck owners, however, that may happen sooner than they expect. Those 173 Cybertrucks have 18-inch steel wheels, as well as wheel studs that could potentially fail. That might actually cause the wheel to fall off the car, and that in turn could do a lot of damage, depending on where it happens and at what speed.
Tesla plans to completely replace the relevant wheel hub and rotors, at no charge. Reports suggest that impacted drivers can simply book service at at Tesla Service Center via the app to get that job done. Still, given that Cybertrucks were already regarded as poor sellers, the notion that the wheels might suddenly fall off will likely not endear this brand to new customers.
Semi Batteries
News also emerged around Tesla’s Semi, and the kind of batteries it is packing. It almost went without saying that those batteries would be substantial, given the weight they would have to pull. But a newly-released document from the California Air Resources Board showed off just what kind of power the Semi is really packing.
It turns out that the Tesla Semi Long Range has an 822-kilowatt-hour usable battery capacity. Its maximum power output is 800 kW, though, supported by three electric motors that power rear axles. The Standard Range model, meanwhile, delivers up to 525 kilowatts, though word from Tesla directly says that both can reach that 800 kW range.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSLA stock based on 13 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 38.06% rally in its share price over the past year, the average TSLA price target of $410.21 per share implies 4.08% downside risk.
