Tesla’s stock (TSLA) jumped 5% to a new all-time high of $500 per share this morning after a new analyst note raised the price target to $600 a share as he sees Tesla reaching a ‘critical scale’.

The stock has been on a very strong rally over the last few months and it consistently pushed to new highs over the last month.

It pushed several analysts to reevaluate their position on Tesla.

Oppenheimer analyst Colin Rusch is the latest and he came out with a very positive note on the automaker this morning.

Rusch wrote:

“We believe the company’s risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace.”

The analyst believes that Tesla reached a “critical scale” to support positive cash flow going forward even with its growth ambitions.

He also believes Tesla has some “key advantages” over the competition when it comes to electric powertrain design, battery technology, and more.

Rusch raised his Tesla price target from $385 to $612 – the new highest price target for Tesla on Wall Street.

Oppenheimer analyst Colin Rusch is ranked #140 out of 5,790 analysts on TipRanks with a 54% success rate and 19.1% return. He has been holding a ‘buy’ rating on Tesla’s stock for about a year before the latest rally:

Tesla’s stock was up 5% when the market opened – trading at $504 per share.

Electrek’s Take

I tend to agree with Rusch. Short of a major worldwide economic downturn, I think Tesla is in a good position financially to keep going without the need to raise more money.

I also like that he is recognizing that Tesla’s push for faster electrification is an “existential threat to transportation companies.”

That’s something I have been saying for a while: “some giants will fall”, but I haven’t heard many people on Wall Street admitting it.

At this point, it’s clear that some automakers are not ready for it. Not only because of Tesla’s lead but because of the broader acceleration of the electrification of the sector.

The last 5 years showed a lot of change in the auto industry, but it’s going to look like nothing compared to the next 5 years.

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