Tesla's Stock Approaches JMP's $1,500 Price Target

On Monday, JPM Securities increased their price target for Tesla Inc TSLA to $1,500. The stock ended up closing at a record high over $1,370.

At time of publication Tuesday morning, the stock was up another 3% to $1,413 a share.

Why It's Important: Joseph Osha of JPM Securities predicts the tech-valued automaker will increase revenue to over $100 billion by 2025. Osha was impressed Tesla was able to deliver so many vehicles in the second quarter while other automakers continue reporting losses.

"If the company can manage 90,000 units during an extraordinarily challenging quarter, there is no reason that Tesla cannot be shipping 130,000 to 140,000 units a quarter by the end of the year in our opinion," Osha wrote in a note.

If Tesla can keep up its delivery momentum, "that puts TLSA on a trajectory to ship 757K units in 2021," Osha said.

Earlier this year, Tesla produced its 1 millionth vehicle. Osha believes by that 2025 goal, Tesla has the potential to be producing over 2.5 million cars per year, with an EBITDA margin of 20%. 

Benzinga's Take: Tesla's stock has been on a dramatic rise. While other automakers are losing sales and have low inventory, Tesla is able to still make impressive delivery numbers, thanks in part to the fact that they're a growing company, still increasing production worldwide.

After the gigafactory in Berlin is complete, which will produce Model Y and Model 3 vehicles, along with a Cybertruck factory in the United States, it seems Tesla could meet Osha's predictions.

Posted In: electric vehiclesEVsJMP SecuritiesJoseph OshaPrice TargetAnalyst RatingsTechMedia