Credit Suisse Doubles Tesla Price Target: 'Priced For Perfection'

Tesla Inc TSLA stock has delivered a phenomenal rally in 2020.

While any material hiccup in the near-term could drive a correction, there are several positive catalysts ahead for the stock, according to Credit Suisse.

The Tesla Analyst: Dan Levy maintained a Neutral rating on Tesla and raised the price target from $700 to $1,400.

The Tesla Thesis: The recent run-up has been driven by a number of reasons and the stock seems “priced for perfection,” Levy said in a note. (See his track record here.)

Tesla’s second-quarter earnings report; the Battery Day at its California factory; and inclusion in the S&P 500 index are expected to be positive catalysts for the stock, the analyst said. 

Tesla’s plans for capacity expansion will be the most prominent catalyst, he said.

Tesla's capacity may nearly double over the next 18 months, from the current 700,000 units to 1.3 million units, Levy said. 

The recent rally has made Tesla the world’s most valuable automaker, even though it will sell less than 1% of global vehicle volumes this year, the analyst said.

The EV maker is up against elevated expectations, and the “onus is now on Tesla to execute to these lofty expectations,” he said. 

Credit Suisse raised its volume outlook for 2025 from 1.2 million units to 1.8 million units.

TSLA Price Target: Tesla shares were up 0.4% at $1,506.71 at last check Friday. 

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Photo courtesy of Tesla.