On April 30th, New Street Research increased Tesla (TSLA) the EV maker's price target from $800 to $1100 on the Game-Changing Gross Margin.

From the company note:

"Tesla reported Auto gross margins of 25.5%, 900hps ahead of our expectations.

• Model Y already profitable with 5,000 units produced!

• Model 3, S, X ex-subsidy gross margin up 200bps sequentially 600bps YoY, excluding shutdowns!

This means we increase our 2025 gross margin expectations from 25% to above 30%.

Game changer for valuation - 2025 Ebit range $25-32bn, we increase our target price to $1,100"

My bullish stance on $TSLA was that they could get to 25% gross margin by 2025. They just posted 25.5% for last quarter. I almost feel betrayed. What am I going to do in the next 5 years? 😂

— Pierre Ferragu (@p_ferragu) April 29, 2020