Tesla's (TSLA) Bitcoin Purchase Marks a Significant Strategic Move - Wedbush

February 8, 2021 9:22 AM EST
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Wedbush analyst Daniel Ives reiterated an Outperform rating and $950.00 price target on Tesla (NASDAQ: TSLA) after the company announced, in a filing, that the Audit Committee updated the investment policy to allow for investing an aggregate of $1.50 billion in bitcoin and may acquire and hold digital assets from time to time. In addition, Tesla expects to begin accepting bitcoin as a form of payment for its products/cars in the future which is a potential game changing move for the use of bitcoin from a transactional perspective.

The analyst stated "this morning's news formalizes the strategy of Musk and Tesla diving into the deep end of the pool of bitcoin and crypto. From a stock perspective, as we have seen with Microstrategy (and Saylor), this move could put more momentum into shares of Tesla as more investors start to value the company's bitcoin/crypto exposure as part of the overall valuation. Ultimately, investors and other industry watchers will be watching this closely to see if other corporations follow the lead of Tesla on this crypto path or on the other hand does it remain a contained few names that make this strategic jump around bitcoin. We maintain our $950 price target and $1,250 bull case".

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

Shares of Tesla closed at $870.32 yesterday.

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