Tesla Motors, sickness led by billionaire entrepreneur and co-founder Elon Musk, has reached a new record, rising the most in five months after a Deutsche Bank AG analyst increased his target price and rating for the company.
The California-based electric automaker saw its shares climb 4.5% to $259.32 at the close of the New York Stock Exchange, the highest level since the company was first publicly traded in June 2010. This year alone, the stock has gained 72%.
“Tesla suggested that their growth trajectory will be much steeper, their mix will be much richer, and their costs will ultimately be much lower than we previously assumed,” said in his report Rod Lache, the analyst.
“Despite the success of the Model S, we think Model X has the potential to be far more successful and a much better value,” also commented Morgan Stanley’s Adam Jonas in August 6 report. “Some in the market have described Tesla as a ‘one hit wonder’ with the Model S. We expect the Model X will put that to rest very, very quickly.”
Lache rated Palo Alto, California-based Tesla to “buy” from his previous “hold” position as he increased his target price for the company shares to $310 from $220. The analyst also expects higher than earlier predicted deliveries of cars – 60,000 units in 2015 and 100,000 in 2016, up 18 and 67% respectively.