UPDATE: Tesla Motors (TSLA) Might Ultimately be Worth $300; Dougherty Raises PT to $200

July 17, 2013 9:10 AM EDT
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(Updated - July 17, 2013 9:17 AM EDT)

Dougherty & Co today maintained a Buy rating on Tesla Motors (Nasdaq: TSLA), but boosted its price target from $90 up to $200. Analyst Andrea James thinks Tesla may ultimately be worth $300, assuming max factory capacity. The new price target includes volume value potential from Tesla's third-generation vehicle.

"Our previous $90 price target valued Tesla only on the potential of the Model S platform, which included sales of the Model X SUV. Our new price target of $200 includes the initial volume value potential of Tesla’s third‐generation vehicle. We ultimately believe that TSLA is a $300 stock at the factory’s maximum capacity, which we hair cut to $200 for the execution risk," said James.

"We do not believe that Tesla's market potential, engineering prowess or future promise has changed. Tesla is executing to plan. Yet at the same time, we believe that TSLA's stock is an easier buy at $120 than at $30, simply because the recent execution makes it clearer than ever how Tesla can advance from here. For most of 2010 and 2011, Tesla was a story stock that traded on expected performance two‐to‐three‐years out. That dynamic remains, only the story has now advanced to the 2016+ horizon," added the analyst.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla closed at $109.05 yesterday.

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