Goldman Sachs Upgrades Tesla (TSLA) to Buy, PT to $780 on Improved LT Sales Outlook and Margin Expansion
(Updated - December 2, 2020 5:39 PM EST)
Goldman Sachs analyst David Tamberrino upgraded Tesla (NASDAQ: TSLA) from Neutral to Buy, PT $780 (from $455.00).
The analyst comments "We believe that battery prices are falling faster than we previously expected which improves the economics of EV ownership, and there has recently been an increase in regulatory proposals from some jurisdictions to limit or ban the sale of new internal combustion engine (ICE) vehicles entirely in 10-20 years. As a result, in conjunction with our global colleagues, we are raising our outlook for EV adoption and now expect EVs to comprise 18% of sales globally in 2030 and 29% in 2035 (with 50% adoption in 2035 in both the US and in Western Europe)."
"We also believe that the momentum behind EVs from both an economic and regulatory perspective is leading to a higher probability of our upside-case EV adoption scenario that calls for 26% global EV adoption in 2030 and 40% in 2035 (with 66% in the USA and 60% in Western Europe)," it was added.
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Shares of Tesla closed at $584.76 yesterday.