Earlier this month, top Wall Street analyst Daniel Ives of Wedbush, gave Tesla its highest price point to date at $950. Ives told TD Americas that he believes this is only the beginning for the EV giant saying “this could be a company that could start to approach 1.5 trillion – 2 trillion market valuation.” At the time, Tesla was valued at $800 billion dollars and TSLA stock was trading at $844 per share. Quite a jump compared to the $100 per share it was trading about a year prior.
Over the course of 2020, the California-based startup became one of the most valuable companies in the world, let alone the most valuable automaker, and managed to raise billions of dollars through several variables including a stock spilt and its integration into the S&P500.
With Tesla stock seemingly not hitting a ceiling, analysts are playing catchup updating their valuation models and releasing new price targets. Oppenheimer analyst Colin Rusch’s is next in line to update Tesla price target. What was previously set at $550 has almost double to $1,036.
Rusch’s commented on the increase: “We believe investors are grappling with where shares go from here… and believe bulls are betting on Tesla leading commercialization of autonomous vehicles technology. Tesla’s efforts simplifying manufacturing have seen significant success and will continue, especially with volumes scaling, and that mix should be a tailwind given higher level of Model S/ X and China-based sales.”
Rusch’s added: “Given production expected to start in Berlin and Austin this year, we are watching timelines and capex numbers closely given potential complications from COVID-19 slow down and unique process equipment, notably for larger molds and battery materials. We expect Tesla to ramp this equipment but would not be surprised by delays due to technological or logistical complexities.”
Rusch’s also noted that his higher price target reflects Tesla’s record-breaking deliveries in Q4 2020.