After one Third quarter Tesla profit and surprisingly many deliveries in the fourth quarter of 2019 Stock market analysts seem to increasingly lose their long-held skepticism about the electric car and energy company. Investment bank Oppenheimer & Co made a particularly positive assessment at the beginning of the new week – and contributed to the fact that Tesla stock broke the $ 500 mark for the first time in early US trading.
$TSLA reaches astronomical heights—again! 🚀💥@elonmusk 420$ ✅ 500$ ✅
What’s next? 😄 pic.twitter.com/as6NZ2RzWH— Pauline 🚀 (@justpaulinelol) January 13, 2020
By the end of 2019, Tesla’s stock had been the reserved one on average Price targets have long since rushed away from analysts, Since then, several brokerage firms have had theirs Forecasts for Tesla raised, but could hardly keep up with the ever increasing share. The responsible Oppenheimer analyst Colin Rusch now sees significantly more price potential: on Monday, he raised his price target from $ 385 to $ 612 previously, reports the Bloomberg news agency.
According to Bloomberg, no other analyst currently believes that a large analysis house can trust Tesla shares. What is interesting about the new study is not only the high target price, but also the reason for it: Analyst Rusch now describes Tesla – as many fans of the company have been doing for a long time – as an “existential threat” for other automakers.
Tesla has now reached a “critical size” that is sufficient to support positive free cash flow in the long term, writes the Oppenheimer analyst, according to CBS Marketwatch. From now on, the company should be able to far-reaching ambitions to finance itself from the current income with the previous business, and is no longer dependent on external growth capital. The analyst cites the decisive advantages of Tesla, among other things, as a lead in drive design and battery technology, the size of the Tesla fleet with modern driver assistance systems and the Enthusiasm from consumers for his electric cars.
Combined with the high risk tolerance, the ability to learn from past mistakes and the greater ambitions than the competition, Tesla is gradually becoming an “existential threat to transport companies that are unable or unwilling to innovate faster”, said the analyst. However, he does not assume that the share will therefore only increase from now on: Despite his high price target, he predicts that Tesla will be listed on the stock exchange still volatile will show.
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