Tesla (TSLA) has been steadily increasing its value, and despite past criticisms of the company, even some bears are beginning to change their minds.
RBC Capital Markets upgraded its Tesla recommendation Thursday after claiming it was “completely wrong” about the company’s value, according to Bloomberg.
The long-term bear changed its rating of Tesla from underperform, an essential equivalent of sell that had held since January 2019, to sector perform.
RBC Capital upgraded Tesla $TSLA this morning. Price target raised to $700 from $339. They missed the last $400+ points for their clients.
— Stocks to Buy (@stockstobuy) January 7, 2021
Analyst at RBC, Joseph Spak, wrote a report addressing the change, claiming that the firm’s biggest misunderstanding was expecting Tesla not to capitalize on its stock price to increase continued fund growth.
Spak wrote, “There is no graceful way to put this other than to say we got TSLA’s stock completely wrong.”
Along with the rating upgrade, Spak increased his 2025 delivery estimate to 1.7 million unit deliveries, from a previous estimate of 1.3 million. Spak claims the new estimates are based on production capacity and market share assumptions, keeping in mind his new price target of $700 for Tesla, up from $339.
Tesla also received a 50% price target boost from Adam Jonas of Morgan Stanley earlier in the week, upgrading the company to a street-high US$810, after an impressive Q4 alongside a $5 billion capital increase.
Shares of Tesla hit an all-time high of $811 today and currently are up 5.7%. Elon Musk has now become the richest person on Earth, surpassing Jeff Bezos.
Well, back to work …
— Elon Musk (@elonmusk) January 7, 2021
As the world continues to transition to EVs, Tesla’s early, dominant position in the market will make them ever more valuable and important.
