Tesla’s Stock Upgraded On Strong Competitive Advantage

Elon Musk claims that despite the economic downturn and a difficult quarter for Tesla, one analyst recently upgraded the stock of the company's stock citing "favorable positioning".

According to the analyst, Tesla is well-positioned for both short- and long term markets due to its early focus upon vertical integration.

According to MarketWatch, Joseph Spak from RBC Capital upgraded Tesla's stock to outperform. He stated that Tesla has a "more favorable near term setup."

Spak noted that Tesla's vertically integrated design will give it a competitive edge in the near and mid-term.

Spak says that Tesla is expected to sell around 279,000 units in the second quarter. Industry buy-side estimates are as low at 250,000.

Spak predicts Tesla will deliver 249,000 units. There is room for an upside if Tesla's Gigafactory Shanghai becomes fully operational, as some reports indicate.

Spak believes Tesla may see margin upside in the second quarter, and the back half year, despite lower delivery estimates from the first quarter.

Tesla could experience a 3 percent increase in its average selling price due to price increases.

"Considering the Tesla pricing actions taken a while ago but not being able to realize because they have been working through their backlog."

Most automakers have increased their prices. While the move might not be in the best interests of buyers, it could help Tesla get through this economic period .

Tesla's cars are still in high demand.

U.S. Tesla orders for the Model 3 RWD Long Range and AWD Long Range variants are expected to be delivered in September or December, according to the latest information.

The Model Y Long Range variant is expected to be delivered between January and April 2023.

The Model 3 and Model Y Performance models arrive much sooner with delivery dates of June through August and September through October, respectively.

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