But one Wall Street analyst is making the case that the stock still could surge another 66% over the next 12 months to hit $2,000. So far Tesla(TSLA) shares have risen an electrifying 189% this year, driven partly by a broader increase in the tech sector.
Wedbush analyst Dan Ives said in a report earlier this week that solid demand for Tesla’s Model 3 from Chinese consumers could help boost the stock. He dubbed the strength in China a “ray of shining light for Tesla in a dark global macro” environment.
Ives noted that demand for Tesla’s newer Model Y SUV is starting to ramp up in China, too. For these reasons, he thinks that China’s growth could add between $300 and $400 to its stock price.
There is a caveat though. Ives has an official price target on Tesla of just $1,250. His $2,000 call is a bull case. Everything has to go right for Elon Musk’s company.
Still, at a price of $2,000 a share, Tesla would have a market value of about $370 billion.
There are only eight American companies that are currently worth more than that — Apple(AAPL), Microsoft(MSFT), Amazon(AMZN), Google owner Alphabet(GOOGL), Facebook(FB), Warren Buffett’s Berkshire Hathaway(BRKB), Visa(V) and Johnson & Johnson(JNJ).
Tesla’s stock has continued to climb thanks to healthy sales for its pricier Model S and X vehicles as well as the more affordable 3 and Y models.
But many other Wall Street analysts are skeptical of Tesla.
The bear case for Tesla
According to data from Refinitiv, only nine of the 33 analysts who cover Tesla have a “buy” rating on it. Eleven have Tesla rated a “hold,” and the remaining thirteen are recommending that investors sell Tesla. The average price target for all Tesla analysts is just $710.47 a share.
Some investors also are worried about a brain drain at Tesla. Several key executives have left in the past year and Tesla also does not have a chief operating officer to help Musk.
The lack of a COO is worrisome to some analysts, especially since Musk has many other business interests that occupy his time, such as SpaceX and his tunnel firm the Boring Company.
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