Tesla (TSLA) gets first $1,000 price target from top analyst on lead with autonomous vehicles

Tesla (TSLA) is again getting a new Wall Street-high and first price target over $1,000 based on a perceived lead with autonomous vehicles and production efficiency.

Tesla (TSLA) stock

Tesla’s stock has been on a tear over the last year – reaching new all-time highs on several occasions over the last few months.

It is pushing the automaker’s valuation over $800 million.

The performance and catalysts pushing that performance are making analysts play catchup and updating their valuation models for the automaker and releasing new price targets.

Earlier this month, we reported on Tesla (TSLA) getting a new Wall Street-high price of $810 per share from Morgan Stanley.

That price target was beaten by Wedbush analyst Dan Ives just a week later with a $950 price target, but it didn’t stand at the highest target for long.

Again a new TSLA Wall Street-high price target

Now it’s Oppenheimer analyst Colin Rusch’s turn to raise the stakes with an update on his coverage of Tesla with a new price target of $1,036 – way up from the previous target of $550.

In a note to clients, the analyst says that Tesla has a lead when it comes to commercializing autonomous vehicles and manufacturing efficiency:

We believe investors are grappling with where shares go from here… and believe bulls are betting on Tesla leading commercialization of autonomous vehicles technology. Tesla’s efforts simplifying manufacturing have seen significant success and will continue, especially with volumes scaling, and that mix should be a tailwind given higher level of Model S/ X and China-based sales.

Rusch sees Tesla’s development of its FSD package as a catalyst that investors are going to follow closely.

As for the improvements in production, the analyst sees new capacity being deployed at new factories in Berlin and Austin as critical, but he worries about potential delays for manufacturing equipment:

Given production expected to start in Berlin and Austin this year, we are watching timelines and capex numbers closely given potential complications from COVID-19 slow down and unique process equipment, notably for larger molds and battery materials. We expect Tesla to ramp this equipment but would not be surprised by delays due to technological or logistical complexities.  

Colin Rusch is one of the highest-ranked analysts on Wall Street. Rusch is ranked No. 12 out of 7,243 analysts on TipRanks based on a 64% success rate and 75% average return.