Wall Street’s less skeptical view of Tesla further solidified Wednesday after a Jefferies analyst more than doubled its price target on the stock, saying the company will continue to expand its competitive advantage across multiple dimensions, including the capacity of the company. battery and industrial efficiency.
Analyst Philippe Houchois raised his goal from $ 1,200 to $ 2,500, making it the highest on the street, according to Bloomberg data. Shares of the electric vehicle maker rose 6.6% to $ 2,1453.81 in New York, setting a new intraday record.
Tesla’s stock value has more than quintupled since a March low, pushing the company’s market capitalization to more than $ 400 billion, which is higher than both Walmart and Johnson & Johnson. The reason behind the increase is less clear, although Wall Street analysts and experts have become more optimistic, pointing to rising expectations that stocks will join the S&P 500 index, the upcoming “Battery Day” of the company, where new technologies can be presented and renewed. market enthusiasm for electric cars.
The company’s chief executive officer, Elon Musk, tweet earlier this week on Twitter that mass-produced batteries with the higher energy density were within reach. Tesla will be holding its battery event on September 22.
“Nothing matters more on ‘Battery Day’ than understanding how ‘million mile’ batteries could profoundly change the automotive business model,” Jefferies’ Houchois wrote in a note to customers. The analyst said that while the investment case around the company has often been in cars, Tesla’s advantage in that space will begin to shrink and the company will challenge the auto industry in many other areas, including leveraging value. your brand, reducing capital expenditures. and improving productivity and software.
Although the analyst said elon cannot “pretend to understand the magnitude and speed of stock price,” Houchois believes the valuation problem lies with the automakers and not with Tesla company.
