Tesla is miles ahead of the crowd in the electric vehicle race, analysts said. The stock rallies.

Text size

Morgan Stanley raised its Tesla price target on Monday and kept a buy note.

Luke Sharrett / Bloomberg


You’re here

the action rallied to break a four-day losing streak. Further gains could be expected on Tuesday after an increase in the price target from another Wall Street analyst.

On Monday evening, Morgan Stanley analyst Adam Jonas raised his Tesla price target (symbol: TSLA) to $ 1,300 per share, against $ 1,200. It has maintained its buy rating.

Better-than-expected delivery numbers in the fourth quarter catalyzed the bump, which values ​​Tesla at around $ 1.3 trillion. This assessment is justified, for Jonas, because he believes that Tesla is one step ahead of the competition.

“Think of EV racing like a marathon,” he wrote. “Tesla is in the lead at mile number 21. Everyone is at mile 2 or tying their shoes.” Additionally, Jonas believes recent deliveries show Tesla getting stronger as the marathon progresses.

Tesla announced deliveries of around 309,000 vehicles in the fourth quarter. Wall Street predicted only about 267,000 vehicles. The delivery results were a big surprise and more cars mean more income.

Since the delivery of the results, the consensus estimate of Wall Street earnings in 2022 has risen to around $ 9.28 per share, from $ 8.78. That’s a 50 cent bump. Wall Street’s average price target fell from around $ 863 to $ 916. That’s a price hike of $ 53. The change in the target price closely reflects estimates of rising earnings, multiplied by a factor of about 100.

Still, the average price target is about 13% lower than where Tesla stock is trading. Wall Street is still teeming with deeply divided bulls and bears. The average analyst price target evaluated by Buy is approximately $ 1,200 per share. Everyone’s average price target is around $ 580. The price difference of $ 620 equates to the value of about two


Toyota Engines

(TM).

Tesla stock closed 3% higher on Monday at $ 1,058.12, staging an epic rally with the


Nasdaq Composite Index.

Tesla stock traded at $ 980 earlier in the day, down 4.6% around the time the Nasdaq was down around 2.7%. The stock and the index looked to be on the verge of suffering a fifth straight loss. But investors decided to step in and buy the downside. The Nasdaq closed just in the green. the


S&P 500

and


Dow Jones Industrial Average

closed down 0.1% and 0.4% respectively.

Shares of the electric vehicle maker were up 0.8% on Tuesday in pre-market trading.

Write to Al Root at [email protected]

About Joseph Minton

Check Also

Teenagers rally around their 15-year-old friend who is battling rare liver cancer

While many teenagers their age will be preoccupied with impending GCSEs or summer plans, two …