CFRA Raises PT, Estimates on Tesla (TSLA) as Inflation Bill Cuts Competition
CFRA analyst, Garrett Nelson reiterated a strong Buy rating on Tesla (NASDAQ: TSLA) and raised the price target to $1,245 from $1,125. Nelson raised CFRA’s EPS estimate to $12.45 from $11.90 for '22, to $17.25 from $16.20 for '23, and to $20.75 from $18.75 for '24.
Nelson feels that Tesla may be the “biggest winner” from the new inflation act signed by President Biden on Tuesday. He said it was like "Christmas in August" as most versions of the industry's two bestselling EVs (Tesla's Model Y and Model 3) become eligible for the $7,500 federal EV tax credit effective January 1, 2023.
Unfortunately, a lot of other electric vehicles are ineligible for the credit. Nearly 70% of Tesla’s competition currently for sale in the U.S. suddenly became ineligible for the tax credit under the new law, alleviating a large portion of the company’s competition.
TSLA is up 0.71% in pre-market trading at the time of this posting.
By Michael Elkins | [email protected]