On October 15th, Baird analyst Ben Kallo raised his (NASDAQ: TSLA) price target to $450 from $360, a significant, 25% increase from his previous price target for the California EV maker, as he is seeing potential upside for gross margin and credit revenue.
Ben Kallo also mentioned in his notes that the stock's (NASDAQ: TSLA) recent rally can lead the company to focus on growth over cost controls. He said regulatory credits can be a "significant swing factor" for Tesla, and believes the company's guidance for credit revenue to roughly double in 2020 could be conservative.
"With share prices at current levels, we think (Tesla Inc) may no longer be incentivized to maintain strict cost controls (particularly on the OpEx line) and could reprioritize investment in growth."
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EV believer... TSLA shareholder ... Tesla Model3, ModelY, Cybertruck and TeslaSolar owner. CEO & Co-founder of www.Tesmanian.com