Despite rising more than 700% over the past year, Tesla Inc TSLA is getting a bullish call and new Street-high price target.
The Tesla Analyst: In a note published after Tuesday's close, Morgan Stanley analyst Adam Jonas reiterates an Overweight rating on Tesla while raising the firm's price target from $540 to $810.
Jonas issued a cautious note in December calling the entry into electric vehicles by Apple Inc AAPL a new “bear case” for Tesla.
The Tesla Thesis: Delivery growth of 61% year-over-year in the fourth quarter was better than expected by Jonas. The analyst raised the 2030 volume estimate to 5.2 million units from 3.8 million units.
“We continue to believe Tesla can outperform vs our sector in 2021,” Jonas wrote in the new note.
The analyst said the market has chosen to discount the value of Tesla compared to peers despite a range of high outcomes.
“Tesla’s business model can unlock recurring mobility services revenue faster and more profitable than the competition,” said Jonas, calling Tesla the “chosen one” for the internet of cars sector.
It’s hard to find a more innovative company, especially in the electric vehicle and autonomous vehicle markets said Jonas calling Tesla the best positioned.
TSLA Price Action: Shares of Tesla closed up 1% to $735.11 on Tuesday. Shares hit new split-adjusted highs of $740.84 earlier in the session.
The stock was up 2.17% to $751 in after-hours trading.
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