Tesla (TSLA) PT Jumps to 'Street High' $1,200 from $650 at Jefferies

Jefferies analyst Philippe Houchois raised the price target on Tesla (NASDAQ: TSLA) to a 'Street High' $1,200.00 (from $650.00) on the belief that Covid-19 is an accelerator of the transition to EVs and renewables, from both consumers and public policy. Tesla is significantly ahead of competitors in product range, capacity and technology. Near term, EV friendly incentives in the EU and lower priced Model 3 support H2 volume, making Tesla more resilient than peers.

The analyst maintained a Buy rating, stating "Tesla is still the only legacy-free OEM engaged in a +ve EV sum game. Against expectations even a few months back, the gap with peers is widening, from product to battery tech/capacity. We fear volatility may remain high but raise our DCF-based PT to $1,250 on higher mid-term growth (+2pp) and lower cost of capital (-1pp to 8%)".

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