Tesla (NASDAQ: TSLA) has made a tremendous comeback over the past couple of months. While the stock has struggled for the most part in 2019, it appears that Elon Musk’s promises are finally bearing fruit as the company is now starting to turn a profit. As such, shares have been skyrocketing to new highs, with Wall Street analysts that once were skeptical are now becoming optimists. Tesla has continued its seven-week win streak as two more analysts officially upgraded the stock on Tuesday.
The most notable of which was Jefferies analyst Philippe Houchois, who raised his target for the company from $400 to $600 per share while doubling down on his “buy” rating. Another analyst, Emmanuel Rosner from Deutsche Bank, is a bit less optimistic but still raised his price target from $290 to $455, although he still has a “hold” rating on Tesla.
“Our focus to date has been on autos as we saw no point in speculating about addressable markets until Tesla could pass the first critical hurdle. Our updated price target starts to reflect Tesla’s ability to pursue additional growth, notably in storage/generation and selling batteries to third-party original equipment manufacturers,” wrote Houchois in a note to clients. “Tesla truly seems to be currently firing on all cylinders,” Rosner wrote in a note to clients. “But with the stock hovering around all-time highs, we worry investor sentiment has gotten bullish too fast, ignoring some of the nearer-term execution risks,” chimed in the more cautious Rosner.
These two price upgrades follow another well-covered analyst upgrade on Monday. Oppenheimer analyst Colin Rusche raised his price target for Tesla up from $385 to $612, an announcement which sent the company’s stock surging almost 10%.
Despite this, however, these upgrades also come as new competition continues to muscle in on the electric vehicle market. Well known automakers such as Ford, BMW, and Mercedes are all working on developing their own electric vehicle counterparts, there are also dedicated electric car makers that are trying to one-up Tesla. This includes Chinese companies such as Nio and Xpeng Motors, although it’s far from certain whether these competitors will end up surpassing Tesla’s lead in terms of battery technology and branding.
Shares of Tesla jumped by 2.5% in response to the news, with the stock having doubled since late October. Whereas most analysts were bearish or neutral on the stock, the complete opposite is true now, with most Wall Street experts being positive on the company’s outlook. Things have never looked better for Elon Musk’s flagship company as 2020 is off to an excellent start.
Tesla Company Profile
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, and Model 3 in 2017. Global deliveries in 2018 were 245,506 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading News