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Tesla Inc. TSLA could see significant growth from a new budget electric vehicle offering, according to prominent investor Gary Black, who <a href="https://www.benzinga.com/24/12/42391708/tesla-to-370-here-are-10-top-analyst-forecasts-for-monday">raised his price target for the EV maker</a> by 27% to $380 from $300 on Monday.



What Happened: Black, Managing Partner at The Future Fund LLC, attributes his &#8220;increased conviction&#8221; to expectations that Tesla will launch a $25,000-$30,000 hatchback model, potentially capturing approximately 15% of the global compact car market.



His revised earnings estimates surpass Wall Street consensus, projecting adjusted earnings per share of $3.80 for 2025 and $17.00 by 2030.



The investment thesis comes amid Black&#8217;s recent portfolio adjustments. In November, his fund trimmed its Tesla position at $351 after the stock <a href="https://www.benzinga.com/markets/24/11/42159444/gary-black-defends-tesla-trim-at-351-no-one-ever-went-broke-by-taking-profits-amid-stocks-150-surge">surged 150% from April lows</a>. The Future Fund&#8217;s Tesla investment strategy has proved profitable, with an average purchase price of $162 and a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41870590/tesla-remains-core-for-gary-black-despite-price-cuts-earnings-drop-nvidia-google-eli-lilly-among-top-performers-in-tech-bulls-portfolio">selling price of $252 since early 2023</a>.



Tesla ranks among the top five positions for The Future Fund Active ETF FFND. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Raising my <a href="https://twitter.com/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$TSLA</a> price target to $380 from $300, based on increased conviction that TSLA will launch a $25K-$30K hatchback that vaults TSLA into the global compact category (~15% global share). I have increased my TSLA Adj EPS as follows: &#8211; 2025 $3.80 from $3.60 (WS $3.29) -… <a href="https://t.co/EInUAo0VOZ">pic.twitter.com/EInUAo0VOZ</a>&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1866187649041490057?ref_src=twsrc%5Etfw">December 9, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$TSLA</a> Summary &#8211; 12/09/2024 Upside: 1/ EV adoption +20%-25% per yr 2/ Fed cuts rate by another 25bp by Y.E. 3/ Higher FSD take rates/licensing deal 4/ Trump streamlines process for securing autonomous driving licenses nationally 5/ $25K-$30K Model Q Compact launch FY'25 1H…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1866204309915885821?ref_src=twsrc%5Etfw">December 9, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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See Also: <a href="https://www.benzinga.com/news/earnings/24/12/42400723/oracle-q2-earnings-revenue-miss-eps-miss-ai-growth-ellison-says-opportunity-is-unimaginable">Oracle Q2 Earnings: Revenue Miss, EPS Miss, AI Growth, Ellison Says &#8216;Opportunity Is Unimaginable&#8217;</a>



What Happened: Black identified several potential catalysts for Tesla, including continued EV adoption growth of 20-25% annually, increased Full Self-Driving adoption, and possible autonomous driving license streamlining under President-elect Donald Trump&#8216;s administration. 



However, he also noted key risks, including the potential elimination of the $7,500 EV tax credit and regulatory challenges for autonomous driving features.



The revised target reflects Black&#8217;s confidence in Tesla&#8217;s long-term growth, using a PEG ratio of 1.75x and projected long-term EPS growth of 25%. Despite his optimistic outlook, Black recently expressed caution about Tesla&#8217;s current valuation, noting that the stock&#8217;s 50% rise since November&#8217;s election has been driven primarily by P/E expansion <a href="https://www.benzinga.com/24/12/42377001/analyst-says-he-is-very-bullish-but-cautious-about-teslas-stock-rally-notes-eps-revisions-have-not-kept-pace-with-stock-price-since-trumps-victory">rather than earnings estimate revisions</a>.



Price Action: Tesla closed at $389.79 on Monday, up 0.15% for the day. In after-hours trading, the stock rose further to $392.35, gaining an additional 0.66%. Year to date, Tesla shares have surged by 56.91%.



According to <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">data from Benzinga Pro</a>, Tesla has a consensus price target of $251.06 from 34 analysts, ranging from a high of $411 to a low of $24.86. The latest ratings from Deutsche Bank, Guggenheim, and BofA Securities average $315, implying a 19.71% downside.



<figure class="wp-block-image size-large"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09202715/Screenshot-2024-12-10-at-6.56.15%E2%80%AFAM-1024x378.png" alt="" class="wp-image-684250"/></figure>



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Image Via Shutterstock 



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Tesla Inc. could see significant growth from a new budget electric vehicle offering, according to prominent investor Gary Black, who raised his price target for the EV maker by 27% to $380 from $300 on Monday, Dec. 9, 2024.

Gary Black Boosts Tesla Price Target By 27% To $380 Based On 'Increased Conviction' That Elon Musk-Led Company Will Launch $25K Hatchback - Tesla (NASDAQ:TSLA), One Global ETF (ARCA:FFND)

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Gary Black Boosts Tesla Price Target By 27% To $380 Based On 'Increased Conviction' That Elon Musk-Led Company Will Launch $25K Hatchback

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