＜Research＞China Renaissance Upgrades Tesla (TSLA.US) to Buy, Hikes TP to US$282.13

　　Tesla (TSLA.US) surpassed expectations for electric vehicle deliveries and energy storage installations in 2Q, according to a report by China Renaissance Securities. Tesla's 2Q deliveries reached 443,956, down 4.8% YoY but up 14.8% QoQ. Deliveries of Model 3/Y were 422,405, while deliveries of other models were 21,551, which exceeded both broker and street expectations.

　　The broker believed that Tesla's EV business fundamentals have continued to improve with the rebound in sales of existing models and the release of new models next year. At the same time, Tesla's valuation is expected to continue to improve under the continued catalytic effect of new products such as FSD, Robotaxi and robots.

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　　China Renaissance raised its operating revenue and non-GAAP net profit forecasts on Tesla for 2024 to 2026. In terms of valuation, considering that the company's EV sales are starting to improve, FSD is rapidly iterating, and new car models will be released next year, the broker raised the P/E valuation of Tesla's automotive business to 90x in 2024, compared to the original 50x P/E, which is still lower than the company's average valuation of 111x P/E from 2021 to 2024. Meanwhile, due to the significant growth of the company's energy storage business, the company's 2024 energy storage business is valued upward to a forecast 10x P/S, compared to the original forecast of 5x P/S.

　　China Renaissance surged its target price on Tesla from US$151.31 to US$282.13 and upgraded its rating to Buy.

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