As electric vehicles (EVs) continue to take the world by storm, one investment firm sees Tesla’s earnings and capital allocation continuing to improve, and it has even upgraded its rating and price target for Tesla’s stock (TSLA).
Tesla’s expected to rise 22 percent over the next year, according to a new report from Jefferies in which the firm upgrade the company’s stock to a ‘Buy’ rating, with a new price target of $850, as reported by Markets Insider.
As the automaker grows, it’s able to operate with better-allocated capital as the industry leader, as explained in a note from equity analyst Philippe Houchois.
KGI Securities Starts Covering Tesla, Gives ‘Outperform Rating’ and $855 Price Target https://t.co/u7xFkSK3hd
— TeslaNorth.com (@RealTeslaNorth) August 2, 2021
In a note, Jefferies said, “Tesla shares went through a healthy re-basing so far this year with execution risk and ‘noise’ dominating the investment case while Legacy [original equipment manufacturers] were fighting back with their own transition plans.”
2022 will hold a greater level of global battery-powered EVs according to Jefferies, leading to more battery and assembly capacity overall, as well as the growth of its EV offerings with buyers having access to the Tesla Model S and the upcoming Cybertruck.
At the time of writing, Tesla’s shares (TSLA) are selling at a price of $713.41 (+14.40), up 2.06 percent from Monday open.
