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Tesla Likely To Be A Big Macro Driver Of Markets In 2021, Says Deutsche Bank Analyst

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Tesla Likely To Be A Big Macro Driver Of Markets In 2021, Says Deutsche Bank Analyst

Tesla Inc (NASDAQ: TSLA) and its CEO Elon Musk may influence the fate of the markets in 2021, Deutsche Bank strategist Jim Reid said in a note Tuesday, as reported by MarketWatch.

What Happened: The analyst called Tesla “the most remarkable market story” of a “remarkable 2020.”

“Given its colossal size and that of the tech sector, their paths in 2021 will probably be a big macro driver of markets," Reid wrote, as per MarketWatch. "Investors in all asset classes might have to assess whether valuations are justified and sustainable.”

Tesla shares have risen 657% on a year-to-date basis. The automaker is due to be included in the S&P 500 index, which has gained 14.36% in the same period.

Why It Matters: Reid noted that the increase in Tesla’s valuation in 2020 and said “is now larger than the next five largest global auto companies combined.”

See Also: Tesla's Valuation Is Greater Than Nearly The Entire Established Auto Industry

Tesla’s dizzying valuation has left analysts divided. While some have pointed to potential headwinds, others see a possible upside to the stock.

On Tuesday, GLJ Research’s Gordon Johnson said the automaker’s shares might plummet down to $60 levels next year as he drew a parallel with cannabis stock Tilray Inc (NASDAQ: TLRY).

Price Action: Tesla shares closed nearly 1% lower at $633.25 on Tuesday and fell 0.92% in the after-hours session.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.

Latest Ratings for TSLA

DateFirmActionFromTo
Apr 2021Canaccord GenuityUpgradesHoldBuy
Apr 2021JP MorganMaintainsUnderweight
Apr 2021WedbushUpgradesNeutralOutperform

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