Tesla’s (TSLA) stock is rallying again and pushing new all-time highs as Wall Street analysts are scrambling to adjust.
The automaker’s stock performance doesn’t get much better than this in 2020.
As of writing, TSLA is up over 200% year-to-date and over 250% since its low during the pandemic back in March.
With another increase of more than 8% this morning, Tesla’s stock is up more than 30% in the last week alone following the better-than-expected Q2 delivery results.
It produces a truly impressive chart:
Tesla is helped by the entire market being way up today, but the automaker is now up more than 10% and reaching new highs of over $1,300 a share.
The stock appears to be moving higher thanks to JMP Securities analyst Joe Osha, who increased his target price on the stock from $1,050 to a new Wall Street high of $1,500.
Q2 deliveries came over his estimate and now he sees Tesla achieving $100 billion in revenue in 2025:
TSLA delivered significant upside to our estimates and the consensus outlook for 2Q20 deliveries, reporting a total of 90,650 units as compared to our estimate of 73,800 and the consensus figure of 70,300. All of the upside appears to have come from Model 3 and Model Y deliveries, which the company reports jointly. We reiterate our Market Outperform rating and raise our price target to $1,500 (from $1,050). Our target is now based on our belief that TSLA is positioned to become a $100bn company with 20% EBITDA margins by 2025, with that outcome discounted back to the present.
Over the last month, the highest Tesla price target changed hands three times on Wall Street as analysts are scrambling to keep up with Tesla’s historic run.
Tesla’s stock could also be helped by a short squeeze.
Short interest expert Ihor Dusaniwsky estimates that people shorting Tesla’s stock are down more than $20 billion this year alone.
Over the last few days, Tesla CEO Elon Musk has been teasing people who have been shorting Tesla — leading to the release of actual wearable short shorts yesterday.
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