Tesla (NASDAQ: TSLA) received an upgrade from Jeffries from Hold to Buy. The firm predicts the stock will rise 22% over the next year to $850.
Jefferies has upgraded Tesla's stock rating as the company continues to prove itself a leader in the mass production of electric vehicles and an innovator in the battery market. In a research note to clients, analyst Philippe Houchois raised the one-year price target to $850 from $700. Jefferies expects Tesla in general to be able to boost their margins as they operate with less but better-allocated capital.
The firm expects the manufacturer to benefit over other EV makers through “lack of legacy issues,” and as demand for EVs continues to grow. Tesla, which has a direct selling model, is becoming more and more attractive to consumers. Strong, direct sales will be the future drivers for increased structural returns in the industry, Houchois wrote.
In parallel with this, Jefferies cut its rating on Daimler to Hold and lowered its price target to €82 from €95, because the upside potential seems limited at the moment. The price target for General Motors has also been lowered to $53 from $68 as its 2022 product cycle looks weak compared to the competition.
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About the Author
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.