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Tesla share rises and rises: Two bankers admit mistakes after price multiplication

Anyone who found the rise in Tesla shares to be steep at the end of 2020 will rub their eyes in the new year. It started relatively calmly, but for three days the paper has been recording ever higher profits and has already gained around a quarter since the beginning of 2021, on Friday alone by 7.8 percent to the new closing record of 880.02 dollars. The day before, CEO Elon Musk became the richest person in the world and the total value of Tesla exceeded that of Facebook at more than $ 800 billion. And two analysts, who had long advised against buying the stock, admitted that they were wrong.

“They were completely wrong at Tesla”

“We can’t put it more elegantly than to say that we were completely wrong with the Tesla share,” wrote the analyst Joseph Spak of RBC Capital in a message to customers, according to Marketwatch. He doubled the price target from $ 339 to $ 700 and raised his assessment, which had previously been a sell recommendation since January 2019, to neutral. Tesla shares exceeded their new target of $ 700 at the end of December.

Due to the further increase in the new year, according to the Tipranks stock exchange service, there are no longer a single analyst at large brokers who Tesla believes will higher prices than currently. The highest target is currently from Goldman Sachs and is $ 810 with an average of $ 501.69. Nevertheless, seven houses still recommend the share as a buy, thirteen are neutral and six recommend selling it.

With Chris McNally from the investment bank Evercore ISI, however, another long-term skeptic left the camp of the Tesla skeptics on Friday, reported the news agency Bloomberg. This analyst also admitted that he had been on the wrong side for more than a year with his Tesla sales recommendation. He tripled his price target to nearly $ 650 and now advises holding the stock.

Analyst: Bet on the future and Elon Musk

According to Bloomberg, Tesla is seen on the market as several companies at the same time, explaining his late change of opinion: an electric car producer plus other businesses such as autonomous driving as well as batteries and drives for other manufacturers. Part of it already contributes to the market value of Tesla with real sales, another is more like “a bet on the future and on Elon himself”. At least with this assessment he is now probably correct, because Musk has already described Tesla as a collection of several startups.

The Tesla boss also warned that the price would burst like a soufflé under a hammer if the company does not meet the high expectations on the stock exchange. That was in early December 2020, when the stock was still under $ 600.

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