Tesla Analyst Hikes Price Target, Says The Company Can 'Make All Other EV Names Obsolete'

Tesla, Inc. TSLA reported earlier this month record deliveries that came in notably above consensus expectations.

The Tesla Analyst: Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Tesla shares and increased the price target from $1,200 to $1,500. The analyst maintained his bear- and bull-case price targets at $500 and $1,600, respectively.

The Tesla Thesis: There are signs that Tesla is accelerating its lead over its EV peers, Jonas said.

"Not owning Tesla means not owning the one company that could make all other EV names obsolete," the analyst wrote in the note.

Berlin, Austin, Gigapress, structural pack, many new model introductions and other developments will likely enter the narrative in 2022, Jonas noted. At this stage, Tesla is clearly in the financial, human, cultural, and technological position to drive industrialization across manufacturing, battery tech, supply chain, EV infrastructure and other important aspects of the ecosystem, he added.

Related Link: Tesla's China EV Sales Surge In December, Outperforming Nio, XPeng, Others

Morgan Stanley raised its fiscal-year 2022 delivery forecast for Tesla from 1.22 million units to 1.46 million units, and increased its 2030 volume estimate from 8.1 million units to 8.6 million units.

By 2025, Tesla global EBITDA will likely be greater than the global EBITDA of General Motors Corporation GM and Ford Motor Company F combined, the firm said.

Morgan Stanley attributed the increased price target for Tesla shares to higher revenue and earnings assumptions, which drive modestly higher valuations from adjacent businesses, including Network Services, etc, in its SOTP model. Almost half of the firm's $1,300 target is accounted for by its core Auto valuation of $618/share, it added.

TSLA Price Action: At last check, Tesla shares were advancing 1.29% at $1,071.78.

Related Link: Tesla Owner Says He Makes $800 A Month Using His Model 3 To Mine Bitcoin, Ethereum

Photo: Courtesy of tesla.com