Jefferies is very optimistic about Tesla (NASDAQ: TSLA), pointing out that the manufacturer is capable of changing all the levels at which the auto industry typically operates. A huge competitive advantage is the fact that Tesla works in other areas of clean energy, which ultimately promises it Amazon-like growth.
Jefferies has one of the most optimistic Tesla forecasts among Wall Street experts. Analyst Philippe Houchois is confident the company is doing well despite the ongoing corona crisis. Even taking into account the fact that Tesla CEO Elon Musk continues to sell his shares, this did not greatly affect their value. The analyst expects Tesla shares to rise to $1,400 over the next twelve months and, accordingly, rates the stock as Buy.
Houchois further elaborated on the reasons for his optimism towards Tesla to Markets Insider. In particular, he highlights the company's ability to change all the levels at which the auto industry typically operates. The analyst explained that Tesla's strategy is to challenge how the industry operates at different levels, how cars are built, how they are designed, how they are sold, and their software.
Tesla is not only a car manufacturer, but also works in other areas of clean energy, which should give Tesla a competitive edge, especially during a period of general phase-out of fossil fuels, the expert is convinced. Houchois suggested that Tesla could achieve a transformation similar to that of the giant, Amazon. It's almost like Amazon has gone from being a bookstore to being a store for everything, he said.
Tesla's plan to launch an electric vehicle for $25,000 was also greeted with great enthusiasm by the analyst. He is confident that this should further help Tesla gain market share from traditional car manufacturers who are increasingly asserting themselves in the electric vehicle market. In the fall, Musk confirmed at a company meeting that the new model could appear in 2023.
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