Tesla (TSLA) has had its very first taste with anything other than steady, upward success, after its official stock split had the company’s numbers growing, then stagnating a bit.
However, on Wednesday, Bank of America analyst John Murphy raised his price target for Tesla from $350 to $550, and reiterated his rating of Neutral, as reported by Benzinga.
Murphy stated that he believed Tesla’s biggest long-term challenge would be funding its global expansion efforts, though he also mentioned that the higher the stock went, the less pressure the company would see in retaining its capital.
"Bank of America analyst John Murphy reiterated his Neutral rating for Tesla and raised his price target from $350 to $550."https://t.co/PubC3s3bf6
— Kyle Field (@mrkylefield) September 2, 2020
In spite of the fact that Elon Musk was quoted in January saying that it doesn’t “make sense [for Tesla] to raise money,” the company’s $5 billion USD offering is now the second time Tesla has raised outside capital this year.
Murphy also shared that Tesla was on an “upward stock spiral,” and that this indicated the lack of need for internal funding.
In a note about the circumstance, Murphy wrote “After 17 years in existence, TSLA’s hyper-growth is not necessarily self-funding, and really does not need to be when low cost capital is plentiful.”
At the time of writing, Tesla (TSLA) is sitting at a stock price of $439.22, down 7.54% from yesterday.
Contributing Writer at TeslaNorth.com from California’s southeast Bay Area. Covers electric vehicles, space exploration, and all things tech. Loves a good cup of coffee, live music and puppies. Buying a Tesla? Click here to get 1,000 free Supercharging miles.