Tesla TSLA Hits All-Time High as RBC Capital Admits "We got TSLA’s stock completely wrong”

Tesla TSLA Hits All-Time High as RBC Capital Admits "We got TSLA’s stock completely wrong”

RBC Capital raised Tesla's (NASDAQ: TSLA) status to Sector Perform, reevaluating the firm's positions, and admitting that they had been previously "completely wrong" in their interpretation. The target price has been increased to $700, up from $339.

RBC Capital analyst Joseph Spack upgraded Tesla to Sector Perform from Underperform with a target price of $700, up from $339. It also raised its 2025 delivery estimate to 1.7 million vehicles, or 28% CAGR over 5 years, from 1.3 million based on capacity and market share assumptions.

The analyst admitted that he interpreted Tesla shares "completely wrong.” “There is no graceful way to put this other than to say we got TSLA’s stock completely wrong,” Spak wrote. He said his biggest mistake was that he underestimated Tesla's ability to use its stock price to raise capital and fund growth or acquisitions.

Starting in January 2019, the analyst had maintained a sell-equivalent underperform rating, but during that time the stock has gained about 1200%.

At the time of this writing, Tesla shares are trading at $802, the new all-time high. This equates to a Tesla market capitalization of more than $760 billion, which is almost equal to the total market capitalization of the world's seven most expensive carmakers.

© 2020, Eva Fox. All rights reserved.


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About the Author

Eva Fox

Eva Fox

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.

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