Tesla (TSLA) PT Raised to a 'Street High' $2,500 at Jefferies Ahead of Battery Day

(Updated - August 26, 2020 6:27 AM EDT)

Jefferies analyst Philippe Houchois raised the price target on Tesla (NASDAQ: TSLA) to a 'Street High' $2,500.00 (from $1,200.00) ahead of battery day where the company will likely discuss new benchmarks and ambitions for battery density, materials and industrial processes leading to pack costs <$100 in coming years. Three issues are worth focusing on:

1) to what extent "million-mile" batteries could upend the way the industry design, manufactures and sells cars

2) could LFP accelerate the roadmap to affordability

3) how much and at what capex cost will Tesla integrate vertically, especially in storage and solar

The analyst maintained a Buy rating, stating "Tesla's competitive edge in cars may soon start to shrink but continues to widen in multiple other dimensions, from brand leverage and software to battery capacity and industrial efficiency. In our view, nothing matters more on "Battery Day" than understanding how the "Millionmile" batteries could profoundly change the auto business model. We raise our DCF based PT to $2,500 ($500 post 1-5 split)".

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