Tesla stock price target doubled to $1,400 by Credit Suisse as analysts caution any upset could trigger a correction
Credit Suisse doubled its stock price target on Tesla Inc. undefined to $1,400 from $700 on Friday, and said the stock is “priced to perfection,” meaning any material upset would drive a correction. Tesla shares have gained a stunning 259% in the year to date, while the S&P 500 undefined has fallen 0.5%, driven by “euphoria’ about electric vehicles, a run of promising datapoints and heightened interest from retail investors, who have become more active during the pandemic. Coming positive catalysts include Battery Day, when Tesla is expected to unveil a long-lasting battery for its future vehicles, and second-quarter earnings that may show a profit, said analysts Dan Levy and AJ Denham. The company is expected to reveal plans to expand capacity, and could double it from its current level of about 700,000 vehicles to 1.3 million, the analysts wrote. To justify its current share price, Tesla needs to clear a raised bar and show that by 2025, it will be producing 2.2 million cars, putting it on par with German car makers. As the world’s most valuable car brand, it needs to deliver to lofty expectations, they wrote. Tesla shares were up 0.8% premarket.