How Tesla (TSLA) Can Easily Go Up 300% From Here
Tweet
Share
E-mail
Get Alerts TSLA Hot Sheet
Price: $393.45 -7.49%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Join SI Premium – FREE
Up 269 percent year-to-date, Tesla (NASDAQ: TSLA) is arguably the hottest stock in the market today. However, if one analyst's assessment of decade-end production goals is accurate shares could still go up another 300 percent from here.
With Tesla targeting 500,000 units a year by the end of the decade, Northland Capital Markets senior analyst Colin Rusch believes this could support a stock price at $300-$500/share.
Coming up with such a seemingly aggressive number, Rusch believes at this level of production, 70-80 percent of units will be Generation 3 - the planned lower price point mass-market vehicle. Still with an average selling price of $50,000 per car and 10% next margins, EPS would be around $17, the analyst notes.
At this level of EPS, a $300 stock price would suggest a P/E multiple of under 18x. A $500 stock price would suggest a P/E multiple of just over 29x. Both reasonable assumptions if earnings can reach that level.
Rusch currently has an Outperform rating and $95 price target on Tesla, although the price target is under review.
Shares of Telsa are up 2 percent mid-day to $124.72.
With Tesla targeting 500,000 units a year by the end of the decade, Northland Capital Markets senior analyst Colin Rusch believes this could support a stock price at $300-$500/share.
Coming up with such a seemingly aggressive number, Rusch believes at this level of production, 70-80 percent of units will be Generation 3 - the planned lower price point mass-market vehicle. Still with an average selling price of $50,000 per car and 10% next margins, EPS would be around $17, the analyst notes.
At this level of EPS, a $300 stock price would suggest a P/E multiple of under 18x. A $500 stock price would suggest a P/E multiple of just over 29x. Both reasonable assumptions if earnings can reach that level.
Rusch currently has an Outperform rating and $95 price target on Tesla, although the price target is under review.
Shares of Telsa are up 2 percent mid-day to $124.72.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Trump said he was unaware of his earnings from crypto
- Tesla Q2 deliveries reach 480,126, topping estimates of 406,024
- Berenberg Starts Brooks Macdonald Group PLC (BRK:LN) at Buy
Create E-mail Alert Related Categories
Analyst Comments, Hot Comments, Insiders' Blog, Trader TalkRelated Entities
Tesla, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
