Tesla (TSLA) PT Raised to $1,125 at Goldman Sachs Saying Hertz Order Has Many Positive Implications

October 26, 2021 9:39 PM EDT
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Goldman Sachs analyst Mark Delaney raised the price target on Tesla (NASDAQ: TSLA) to $1,125.00 (from $905.00) while maintaining a Buy rating and is positive on the 100K order from Hertz.

Delaney said while the order is material by itself, they believe it will help the company sustain strong growth and margins.

As an example, the analyst said with supply/demand already tight and the company not discounting to win the Hertz business, "we believe that this order will help Tesla to continue to generate strong margins."

Further, Hertz typically holds vehicles for a few years and described this as an initial order, suggesting additional sales over time. "It could also incentivize other fleets to shift toward EV," he added.

Lastly, the analyst sees other revenue opportunities as the installed base grows, including in charging.

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