But a Wall Street analyst is arguing that the stock could still rise another 66% in the next 12 months to reach $ 2,000. Up to this point Tesla (TSLA) Shares have risen an electrifying 189% this year, fueled in part by a broader rise in the tech sector.
Wedbush analyst Dan Ives said in a report earlier this week that strong demand for Tesla Model 3 by Chinese consumers could help boost the stock. He called the force in China a “bright ray of light for Tesla in a dark global macro environment.”
Ives noted that demand for Tesla’s new Model Y SUV is also starting to increase in China. For these reasons, he thinks that China’s growth could add between $ 300 and $ 400 to its share price.
However, there is a caveat. Ives has an official Tesla price target of just $ 1,250. Your $ 2,000 call is a bullish case. Everything has to go well for Elon Musk’s company.
Still, at a price of $ 2,000 a share, Tesla would have a market value of approximately $ 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 (full board)Warren buffett Berkshire Hathaway (BRKB), Visa (V) and Johnson and Johnson (JNJ).
Stocks of Tesla have continued to rise thanks to healthy sales of its most expensive vehicles, the S and X Models, 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 Refinitiv data, only nine of the 33 analysts covering Tesla have a “buy” rating. Eleven have rated Tesla as “hold”, and the remaining thirteen recommend that investors sell Tesla. The average price target for all Tesla analysts is only $ 710.47 per share.
Tesla’s bears point out that the company has yet to prove that it can be consistently profitable, which is the main reason shares are not yet in the S&P 500, despite its high market value.
JD Power also recently noted that Tesla was ranked last in its latest quality ratings for top automakers.
And then there is Elon Musk.
While the Tesla CEO is hailed as a visionary by his fans, Musk’s detractors worry about his penchant for saying controversial things on Twitter and recent comments that suggest concerns about the coronavirus are overblown.
Some investors are also concerned about a brain drain on Tesla. Several key executives have left in the past year, and Tesla also doesn’t have a chief operating officer to help Musk.
The lack of a chief operating officer is troubling to some analysts, especially since Musk has many other time-consuming business interests, such as SpaceX and his tunnel company The Boring Company.
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