Tesla Inc TSLA and its CEO Elon Musk may influence the fate of the markets in 2021, Deutsche Bank strategist Jim Reid said in a note Tuesday, as reported by MarketWatch.
What Happened: The analyst called Tesla “the most remarkable market story” of a “remarkable 2020.”
“Given its colossal size and that of the tech sector, their paths in 2021 will probably be a big macro driver of markets," Reid wrote, as per MarketWatch. "Investors in all asset classes might have to assess whether valuations are justified and sustainable.”
Tesla shares have risen 657% on a year-to-date basis. The automaker is due to be included in the S&P 500 index, which has gained 14.36% in the same period.
Why It Matters: Reid noted that the increase in Tesla’s valuation in 2020 and said “is now larger than the next five largest global auto companies combined.”
See Also: Tesla's Valuation Is Greater Than Nearly The Entire Established Auto Industry
Tesla’s dizzying valuation has left analysts divided. While some have pointed to potential headwinds, others see a possible upside to the stock.
On Tuesday, GLJ Research’s Gordon Johnson said the automaker’s shares might plummet down to $60 levels next year as he drew a parallel with cannabis stock Tilray Inc TLRY.
Price Action: Tesla shares closed nearly 1% lower at $633.25 on Tuesday and fell 0.92% in the after-hours session.
Click here to check out Benzinga's EV Hub for the latest electric vehicles news.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.