Tesla (NASDAQ: TSLA) gets a price target boost to $1,036 from $486 from Oppenheimer, who expects even more upside potential for the manufacturer. Colin Rusch stressed that the bulls are betting on the leading commercialization of autonomous vehicle technology, and Tesla's efforts to simplify production have met with significant success and will continue, especially with increased volumes.
Oppenheimer analyst Colin Rusch more than doubled his target price for Tesla shares to $1,036 from $486. This target price is the most optimistic among analysts, and reflects the firm's confidence in the growing success of the company. The valuation supporting its new price target is based on fast-growing stocks that are expanding exponentially, "as investors engage in price discovery related to inflationary pressures from stimulus measures."
Rusch writes that, because the share price has doubled again since November, he believes investors are grappling with where shares go from here. He believes bulls are betting on Tesla's leading commercialization of autonomous vehicle technology. Rusch emphasized that the training cycles provided by more than one million vehicles on the road are an exceptional advantage for the company, and it will be able to gain experience in vehicle safety much faster.
"Given TSLA stock doubling again since November, we believe investors are grappling with where shares go from here. We believe bulls are betting on TSLA leading commercialization of autonomous vehicles technology. While we continue to have misgivings about risks related to TSLA not incorporating LiDAR into its vehicles yet, we believe the learning cycles enabled by having over 1M vehicles on the road is an extraordinary advantage. We continue to believe best practices in vehicle safety point to 6B test miles being necessary to validate L4 + L5 ADAS. Assuming 12K miles driven / year per car, TSLA's shadow mode data collection can reach that threshold in ~ six months, years faster than competitors."
The analyst also believes Tesla's efforts to simplify production have met with significant success and will continue, especially with increased volumes, which should be a catalyst given the higher level of China-based and Model S and Model X sales.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.