Wednesday, 11 September 2024
by BD Banks
Tesla (NASDAQ: TSLA) shares continued to trend higher today, after an analyst assigned the stock a price target that is among the highest on Wall Street. Tesla stock has soared by over 25% in the last three months.
Tuesday morning, shares were higher by as much as nearly 5% after Deutsche Bank analyst Edison Yu began coverage by reinstating his firm’s buy rating. As of 11:55 a.m. ET, the stock still held onto a gain of 2.5%.
Yu believes Tesla stock is worth $295 per share. That’s one of the highest valuations on Wall Street and implies another 32% of upside from recent levels. Yu’s bullish stance is based on his thinking that Tesla not just an electric vehicle (EV) maker, but really a technology platform that can be used by several industries.
Tesla has always had business segments that are separate, but complementary to, its EV business. That includes its network of EV chargers as well as energy storage and robotics. Tesla reported record energy generation and storage revenue in its second quarter of over $3 billion, which doubled year over year.
Yu thinks Tesla’s technology leadership will continue to boost that segment and others. He stated Tesla is “in a league of its own and represents our highest conviction secular leader, poised to reshape multiple industries across auto, energy, mobility, and robotics.”
Investors need to believe that he is correct in assuming that Tesla’s robots will be used in various industries and that its self-driving technology will lead to a fleet of robotaxis and a growing revenue stream for Tesla. If those aspirations pan out, Tesla could grow to be worth more than Yu even believes at this time.
Before you buy stock in Tesla, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tesla wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $652,404!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 9, 2024
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.