Tesla closed the trading day on Tuesday at $735.11 per share, up 0.73% for the day. But with a new price target increase by Morgan Stanley, the stock has now soared to an all-time high in after-hours trading.
Morgan Stanley analyst Adam Jonas has increased his price target for Tesla from $540 to $810, what he calls a ‘street high’, to go with an overweight rating. The analyst’s firm set a bull case of $1,232 for Tesla.
“While the range of outcomes is admittedly high, the market has ‘chosen’ to ascribe a higher level of discounted value to Tesla than that typically discounted for its peers,” explained Jonas in his research note, reports The Street.
“Despite the extraordinary run in the share price, we continue to believe that Tesla can outperform vs. our sector in 2021. In our opinion, Tesla is still the best positioned company in EVs and AVs under our coverage due to its people, its technology, business model and access to capital,” added the analyst.
Jonas also increased his 2030 volume to 5.2 million units from 3.8 million units.
“Furthermore, it is important to note that the company has no entanglement with the environmental liabilities that burden its legacy competition. Put it all together and we believe Tesla’s business model can unlock recurring mobility services revenue faster and more profitably than the competition,” explained Jonas.
“We struggle to find a more innovative company with the ability to execute against the high degree of difficulty inherent in sustainable transportation and energy at scale. We reckon it’s a rather short list,” concluded the analyst.
As of writing, Tesla is trading after-hours at $752.40, up 2.35%, which is an all-time high for the stock.
