It is clear that the trend to not bet against Tesla has carried over into 2021 as Tesla shares were on the rise again this morning. With the continued success Tesla has seen over the years, specifically 2020, where most other automakers saw a drop in sales caused by the current global pandemic, analysts are continuing to up the California-based automaker’s price target with thoughts of even brighter days ahead for the EV giant.
Baird analyst Ben Kallo said in a note to clients on Monday that he lifted his price target for Tesla to $728 a share from $488, saying “bias for the stock remains to the upside.”
Top Wall Street analyst, Daniel Ives of Wedbush, said he sees a “goldilocks” environment in regards to tech stocks now that the Biden administration is in the White House. Ives included Tesla in the statement, which he believes will benefit from a new blue senate and Biden’s commitment towards renewable energy.
Earlier this month, Ives discussed Tesla’s historic year with TD Americas. As one of the more optimistic analysts, Ives said he sees Tesla potentially rising above $1.5 trillion in the next couple years: “In a year or two from now, we’re not just looking at one trillion for Tesla, but in a couple of years this could be a company that could start to approach 1.5 trillion – 2 trillion market valuation.” In turn, Ives raised his one-year price target for the automaker to $950 from his previous $751.
As Tesla shares continue to rise ahead of its fourth-quarter earnings, many price targets from several top Wall Street analysts will likely follow suite, and some believe this is only the tip of the earnings iceberg for the EV giant.