Expecting the rapid, global development of electric vehicles, Mizuho Securities analyst Vijay Rakesh initiates coverage on Tesla (NASDAQ: TSLA) with a Buy rating and a price target of $775. The firm believes that Tesla will be the leader for the next decade and beyond.
Mizuho Securities Co., Ltd. operates financial instruments businesses. The Company offers dealing, brokerage, underwriting, investment trusts, pensions, insurances, and other services. Mizuho Securities conducts businesses worldwide.
Rakesh writes that Tesla is the world leader in the electric vehicle market, with a number of advantages over other manufacturers. He highlights that the company has vertically integrated manufacturing, advanced batteries, ADAS (Advanced Driver Assistance System) roadmaps, innovation, and a huge EV service area.
"Tesla is the global leader in the EV market with its vertically integrated manufacturing, advanced battery and ADAS (advanced driver assistance system) roadmaps, innovation, and an unsurpassed EV footprint."
The analyst points out that with less than 1% of global light vehicle production (LVP) Tesla has huge growth potential, as the share of electric vehicles is projected to grow to 25% of the global LVP by 2025, up from 3-4% now.
Mizuho Securities believes that Tesla will be the leader for the next decade and beyond. This is because Tesla has advanced battery technologies that, in addition to making the manufacturer the leader in the EV market, provide sustainable energy storage for residential and industrial applications, disrupting the global energy market.
"With Tesla's cutting-edge battery technology driving key leadership in the EV market and providing sustainable energy storage for residential & industrial applications, disrupting the global energy market, we see TSLA as a leader for the next decade and beyond."
H/T Sawyer Merritt/Twitter
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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.