Shares in Tesla jumped on Thursday after Goldman Sachs upgraded its stock to “buy” from “neutral” and boosted its price target to $780, currently the highest on Wall Street.
Tesla stock rose as much as 5% to intraday high of N598.96 per share. The electric vehicle maker’s shares are up 603% year-to-date, boosted by its upcoming inclusion in the S&P 500 on December 21 and fading concerns about its ability to make profits.
Goldman’s strategists wrote in a December 2 report that “the shift toward battery electric vehicle adoption is accelerating and will occur faster than our prior view.”
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They noted battery prices are falling faster than expected, while governments around the world are passing regulations that could entirely phase out higher-emission vehicles within 10 to 20 years. That, in turn, is improving the sales outlook for electric vehicles.
Other lesser-known product offerings, including solar roof installations for homes, will add to Tesla’s long-term sales and potential, in Goldman’s view.
“The energy business should also benefit from the regulatory shift toward carbon reduction and clean energy, and solar market valuations have similarly accelerated,” strategists wrote.
Tesla currently has 11 sell ratings, 10 hold ratings, 11 buy ratings, and 1 strong buy rating from analysts, according to MarketBeata.
Excerpt from Business Insider.
