Credit Suisse Initiates Coverage On Tesla, Says It's 'Not A Fair Fight'

In a note dated August 13, Credit Suisse analyst Daniel Gaives initiated coverage of Tesla Motors TSLA with an Outperform rating and a $324.93.

"Electric vehicles are inherently better than Internal Combustion (ICE) vehicles," said Gaives. "If Tesla can get to cost-parity with ICE and still offer $1,400-$2,500 per year fuel savings to the consumer, it won't be a fair fight."

Gaives believes Tesla is in fact on the road to cost parity. He noted that the Gigafactory is a "major step" in that direction and says battery costs for the Model S and X could come down to the $10,000-11,000 level with the battery costs for the Model 3 as low as $7,500.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsPrice TargetInitiationAnalyst RatingsCredit SuisseDaniel Gaives
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!