Tesla’s shares jumped again Wednesday, gaining nearly 9 percent in the session to top $930 and have a market value of nearly $170 billion. Piper Sandler, the investment bank, raised Tesla’s price target to $928 a share, the highest on Wall Street, according to FactSet. Piper Sandler said Tesla’s entry into new areas of clean energy would drive the stock higher.
Piper Sandler’s bullish view is focused on Tesla’s battery and solar products business, which currently accounts for only 10 percent of Tesla’s sales. However, analysts say the growth in these products is similar to that of Tesla motors.
Earlier, Morgan Stanley analyst Adam Jonas nearly doubled Tesla’s most optimistic target to $1,200 from $650. Adam Jonas also raised the base and most pessimistic target price, raising the base target price to $500 from $360 and the most pessimistic target price from $115 to $220.
The most optimistic target price is based on the “radical assumption” that Tesla will deliver 4m cars by 2030, accounting for 30 per cent of the global electric car market.
Tesla’s share price has risen more than 100 percent so far this year alone. Last month, Tesla’s strong earnings gave investors more confidence in the company’s balance sheet. Tesla’s shares were up 13 percent in after-hours trading after the results.
Tesla’s rally began after Argus Research raised its target price to $808 on February 3, and its stock rose 19 percent on the day. Then, the next day, billionaire investor Ron Baron said he believed Tesla’s revenue could top $1 trillion over the next decade, and the stock rose 13 percent that day.
Some investors worry that Tesla may be in the midst of a bubble-like rally, unconstrained by fundamentals, and that short-backs and investors’ fears that not holding the stock will miss out on opportunities have helped.
Despite some bullish bulls on Wall Street, 45 percent of The 31 analysts who cover edrify Tesla have a sell rating on the stock, according to FactSet, and only six have suggested buying.