On May 5, we highlighted opportunity in Tesla (TSLA).
At the time, we noted, “Tesla director Joe Gebbia paid just over $1 million for 4,000 shares of Tesla. He paid an average price of. $256.31 per share. Before this transaction, insiders last bought shares of Tesla in February 2020. However, that’s not it’s only near-term catalyst. Elon Musk just said his time at DOGE will drop significantly. Plus, analysts at Wedbush just raised its price target on TSLA to $350 with an outperform rating.”
Tesla traded at $280.26.
Today, Tesla is up to $349.98, which puts it right under our initial $350 price target. Our next price target on TSLA is $400, which we believe could happen shortly.
Fueling upside, analysts at Mizuho just raised their price target on the electric vehicle stock to $390 from $325 with an outperform rating.
In addition, CEO Elon Musk said he will dedicate more time to the company, and reduce his time with the Department of Government Efficiency (DOGE). Plus, there’s a lot of excitement about the company’s self-driving service – which is expected to launch by June 2025.
And, according to Morgan Stanley, Tesla may be sitting on a $5 trillion opportunity by 2050, with humanoid robots. Reportedly, Tesla is developing its Optimus humanoid robot, which, according to Tesla CEO Elon Musk could become the company’s most valuable product line.
“While we are valuation-/sentiment-minded when recommending stocks, we agree with the underlying notion that Tesla cannot be compared to other automaker stocks, not because it isn’t an ‘auto company’, but because it’s arguably best positioned to capture sizable opportunities that exist across auto/mobility and adjacent markets,” as quoted by CNBC.
Sincerely,
Ian Cooper
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