Tesla Shares Have More Than Tripled This Year – What’s Next? image

Tesla’s shares reached the highest level in seven weeks after an analyst from Dougherty & Co. more than doubled her price forecast for the automaker.

Yesterday, July 17th, Tesla’s shares increased 10% to $120.25 at the close in New York, the best increase for one day since May 28th. This year so far Tesla’s shares have more than tripled, compared with the Russell 1000 Index 18% increase. The analyst for Dougherty & Co., Andrea James, increased her price forecast for the electric-vehicle maker to $200 from $90. Recently Goldman Sachs said that shares might drop to $84 and $113 in the best case.

“We ultimately believe Tesla is a $300 stock at the factory’s maximum capacity, which we hair cut to $200 for the execution risk,” James wrote. “We believe that Tesla is the only firm that has figured out how to make” electric vehicle technology “work.”

During the first quarter, Tesla’s net income reached $11.2 million, compared with a loss of $89.9 million in 2012. From January to March Tesla sold 4,900 Model S sedans, surpassing the previous forecast of 4,500 units.

The company expects full-year deliveries for the Model S to hit 21,000 units, up from the previous goal of 20,000 units.

Source: Bloomberg