Tesla share is presently trading around $2,100 level, up about 4%, after a long time, Tesla Stock bullish analyst Philippe Houchois of Jefferies followed the likes of Daniel Ives of Wedbush by raising the price target of the electric vehicle giant stock to $2,500 from $1,200 while keeping a Buy rating.
Like I have been suggesting on my twitter handle that analysts will keep raising the price target of Tesla stock until they run out of numbers.
This increase follows Wedbush analyst Daniel Ives’s Tesla bull-case scenario price target increase from $2500 to $3500.
This price target of $2,500 from $1,200 represents the highest listed on FactSet.
“Tesla’s competitive edge in cars may soon start to shrink but continues to widen in multiple other dimensions, from brand leverage and software to battery capacity and industrial efficiency,” Houchois wrote in a note to clients.
According to him, Tesla will “set new benchmarks and ambitions for battery density, materials, and industrial processes leading to pack costs <$100 in coming years.”
He plans to watch out for any information about how Tesla plans to conduct vertical integration, especially in its storage and solar businesses, and what impact that will have on capital expenditure costs.
“We cannot pretend to understand the magnitude and speed of share price moves,” he added. “we still see logic in the exuberance, in part because growth expectations for 2020 to 2022 doubled since September 2019, almost exclusively driven by autos as non-auto related revenue remains a small fraction of estimates,” he added.
According to him, his price target amounts to $500 on a split-adjusted basis, as Tesla will be conducting a five-for-one stock split after the close of trading Friday.
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