A year from now, Tesla (TSLA) at $ 2,000 a share may look like a trade, suggests Noah Hamman, CEO of AdvisorShares.
“Tesla is the one that has the most miles, the most data, probably one of the better systems we’ve tested on the road. These all become very interesting things. It’s possibly a year or two that we now think $ 2,000 the stock was still pretty low, but who knows, “Hamman told Yahoo Finance’s The First Trade.
Hamman added, “It’s shocking [to see Tesla’s stock at $2,000], and it can probably go up. I mean I’m surprised by the number. It makes it difficult to be a new investor in that stock to think about whether you will get the returns from a price perspective. But it’s a great company, a great company. ”
Hamman has been shocked by many on Wall Street by the bullish move in Tesla in recent months.
This week, Tesla’s stock market raised $ 2,000 a share for the first time. The share has risen 392% —130% annually to this day over the past six months, as Tesla has shown back-to-back quarters of profitability. That has led to speculation that Tesla will be added to the S&P 500 and trigger a fresh wave of purchases by fund managers.
Market watchers have told Yahoo Finance that the latest climb in earnings – which sent founder Elon Musk to number five on the list of the richest people in the world with a net worth of $ 92 billion – is fueled by optimism ahead of a five for one stock. split on 31 Aug.
On Thursday, Tesla surpassed Walmart’s largest retailer (WMT) in the world in terms of market share, according to data from Yahoo Finance Premium.
But Tesla bulls say the foundations on the company guarantee an even higher valuation and that the rapid rise in supply in 2020 is not just a speculative bubble.
“We continue to believe that EV demand in China will start to accelerate in July / August with Tesla competing with a number of domestic and international competitors to stay market share with Giga 3 the linchpin of success, which remains the price that Musk and Tesla laser focus is on fixing, “said Wedbush Securities analyst Dan Ives.” We see more leverage in the story now on the horizon from Giga 3 along with some price cuts in both the US and China that continue the demand can stimulate, as the macro begins to improve and the conditions for lockdown worldwide become easier. “
Ives has a price target of $ 1,900 on Tesla, but has a bull estimate of $ 2,500.
Brian Sozzi is an editor-in-chief and co-anchor of The First Trade by Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and to LinkedIn.
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