Tesla shares will rise to $335 over the next 12 months, KGI Securities expects. The firm's analysts believe Tesla is reaping the rewards of its past investments in technology and batteries this year.
Tesla shares are rising every day. They are up 43% in the last 30 days. On Monday, TSLA reached a new record in its history: growth for 12 trading sessions in a row. At the moment, there is every chance the winning streak will continue on Tuesday.
Analysts were also quick to correct their forecasts of the expected price of TSLA within 12 months. This week, a new record target for Tesla shares was set by KGI Securities analyst Jennifer Liang. She believes the stock could soar to $335 over the next 12 months. At the time of writing, the stock is trading at $249.83. The price target with an upside potential of about 35% is optimistic. However, it is built on a number of factors.
Liang says Tesla's aggressive investment is paying off well for the company this year. The analyst mentioned Tesla's investment in manufacturing and battery technology. In addition, the company also benefits from its extensive network of fast charging stations. Ford and General Motors have announced a partnership with Tesla over the past few weeks to make their vehicles compatible with the Supercharger network. Following them, a number of charging equipment manufacturers have also announced they are integrating the North American Charging Standard (NACS) into their chargers.
Liang also emphasized that Tesla is ready to benefit from the Inflation Reduction Act (IRA). It allows eligible customers to receive up to $7,500 in credit when purchasing Tesla vehicles. Semi is also eligible for a credit of up to $40,000. In addition, Liang estimates Tesla will receive billions of dollars in tax credits for its battery business. The analyst also believes that Tesla's AI product development is currently undervalued.
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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.