Tesla

Tesla Inc (NASDAQ: TSLA) shares were about 3% up on Monday morning after receiving a ‘buy’ rating from Jefferies. The financial services company now has a price target of $850 on Tesla for the next twelve months that represents a potential upside of more than 20%.    

Tesla’s edge over other EV manufacturers

Tesla continues to be the leader of innovation in the EV sector, analyst Philippe Houchois wrote in a research note to clients. He cited “lack of legacy issues” as Tesla’s edge over other automakers that are increasingly turning to EVs to benefit from the rising demand for electric vehicles.

Jefferies analysts also slashed their price target on competitors like Daimler and General Motors on Monday. The news comes more than a week after Tesla reported market-beating quarterly results on the back of a 100% increase in sales.

Shares of the United States’ largest electric car manufacturer have climbed by roughly 10% after reporting earnings on July 26th.  

Bernstein’s Toni Sacconaghi doesn’t agree

On the contrary, Bernstein’s Toni Sacconaghi rated Tesla at ‘underperform’ with a price target of $180 on Monday. On CNBC’s “Squawk on the Street”, Sacconaghi that Tesla faces stiff competition in China.

“Sequentially, Tesla’s overall revenue grew 10% in Q2, but it was down by the same amount in China. Unlike in the U.S., where Tesla has been raising prices, it introduced a lower-priced Model Y in China last month and slashed its price for Model 3 as well. The bottom line is that the Chinese market is dramatically more competitive than the U.S. There are over 100 domestic EVs being offered in China versus only 9 in the United States.

Sacconaghi also pointed out in the U.S., Tesla’s share in the EV market stood at 60% last year, compared to only 16% in China.

The post This Jefferies analyst thinks Tesla shares could surge by more than 20% appeared first on Invezz.



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Wajeeh Khan
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