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As Tesla continued to climb last week, analysts at Goldman Sachs raised its stock rating from “Neutral” to “Buy” and raised Tesla’s one-year stock price target from $ 455 to $ 780.
Tesla has been good news recently, has achieved profitability in five quarters and has been successfully included in the S&P 500 index. Elon Musk has also been selected by Fortune as the best businessman of the year. Goldman Sachs’ operations on this basis are even more the icing on the cake.
Goldman Sachs cited the following reasons for this increase: First, Goldman Sachs analysts generally believe that the current price of electric vehicle batteries on the market is falling faster than expected. Second, more and more regulatory agencies will ban the sale of internal combustion engines for decades to come. Based on the above factors, the popularity of electric vehicles will inevitably accelerate. Goldman Sachs predicts that by 2030, electric vehicles will account for 18% of global car sales, with the share expected to increase to 29% by 2035. Electric vehicle sales in the United States and Western Europe may reach around 50%. % then.
Additionally, the upcoming Biden administration will also benefit Tesla’s prospects. The Goldman Sachs report noted: “Obama had requested that the fuel consumption of automobiles be reduced to about 55 miles per gallon by 2025 during his tenure. From this, as a starting point, we believe that vehicle sales electric are sure to double, especially if there are no more in the case of subsidies. ”Goldman Sachs analysts also said that Tesla’s commercial value of energy and autonomous driving may also be higher than expected.
Like Goldman Sachs, there are many institutions that are super bullish on Tesla’s stock price target. Wedbush Securities analyst Dan Ives also raised the stock’s rating last week. Although his expectation for Tesla’s one-year stock price target is still below $ 560, he has reset the stock’s “bull market” target to 800-1,000. Ives told Fortune that the demand for electric vehicles “really started to change, especially in China.” He noted that this year’s EV sales accounted for only 3% of the world, but this proportion is expected to reach 10% by 2025. Tesla is clearly the leader among them. By 2022, Tesla’s market share in China will increase from 15% to 40%. “
However, Tesla’s risk is yet to be ignored, and all analyst reports emphasize this point. As noted in previous Fortune issues of Tesla’s special report, this car company’s business model has fundamental problems. It does not actually come from selling cars, but is based on the sale of “carbon credits” to other companies. .
However, Goldman Sachs still emphasized in the report that Tesla should not be undermined this year. Analysts wrote that they also downgraded Tesla’s shares in June because Tesla’s price cuts exceeded expectations at the time, and there were some reports that the Model Y faced challenges in manufacturing, but Goldman Sachs noted this time. “Our previous prediction that Tesla ‘will grow more slowly in the next 20 years’ is incorrect. Since Goldman Sachs downgraded its rating on June 11, this stock has risen 192%, while the S&P 500 has risen. 22% “. (Fortune Chinese Network)
Compiler: Chen Yixuan
