2020-07-06

The stock of Tesla was over $1,200. This is how $2,000 could be hit.

Article Edited by | Jhon N |

Image:-Tesla

During this week, Tesla's reserve rose 26 percent to about $1,000, $1,100, and $1,200 during the holiday shortened period. In the S&P 500, Tesla is valued more than most blue chip companies.

However, one analyst at Wall Street argues that in the next 12 months, the share could still increase by 66 per cent to $2,000. To date, this year's shares of Tesla (TSLA) have grown by an electrifying 189%, partly driven by a broader growth in the technology sector.

A sound demand from Chinese consumers for Tesla's Model 3 could help to boost the stock. In China, he called the strength a "ray of light shining in a dark world macro" environment for Tesla.

Ives noted that Tesla's newer Y SUV model is also beginning to rise in China. Therefore, he believes that the growth of China could add up its stock price to between $300 and $400.

However, there's a warning. Ives has only $1.250 in Tesla's official price target. He's a bull case for $2,000. For Elon Musk 's company, everything has to go right. However, Tesla would be worth approximately $370 billion at a price $2,000 per share.

Apple (AAPL). Microsoft (MSFT), Amazon (AMZN; Alphabet (GOOGL) owner, Facebook (FB), Warren Buffett's Berkshire Hathaway and Visa (V) as well as Johnson & Johnston (JNJ) are just 8 American businesses that currently value more than that.

Through healthy sales for its pricer models S and X, and the more affordable 3 and Y models, Tesla 's stock continued to rise. But Tesla is skeptical of many other Wall Street analysts.

Only nine of the 33 analysts covering Tesla have a "buy" assessment on it according to data from Refinitiv. Eleven have Tesla classified as 'holding,' and the remaining 13 recommend Tesla to investors. For all Tesla analysts, the average price target is only $710.47 per share.

Tesla notes that the company still needs to prove that it can always be profitable, which is the main reason why it does not yet hold the S&P 500 – despite its immense market value. J.D. Power has noted recently that Tesla has ranked last for major automakers in its most recent quality ratings.

While the Tesla CEO is acclaimed as a fan by his fans, detractors of Musk worry about his tendency to talk controversial things about Twitter. Recent commentaries suggest that concerns about coronavirus are exaggerated.

Some investors are also concerned about Tesla's brain drain. Several key managers have left over the past year and Tesla also has no operating manager to help Musk. Some analysts are concerned about the lack of a COO, especially since Musk has many other commercial interests, like SpaceX and its tunnel company Boring.