Business & Investment

Tesla shares exceed $ 800 in hopes of “blue”, Wall Street upgrade

Tesla’s stock hit a record high on Thursday, boosted by a single upgrade, making the “blue” Senate a “potential game changer” for Silicon Valley electric car makers and other EV and alternative energy companies I’m expecting.

+ 7.94%

The stock traded at a record high of $ 816.99 during the day, extending the winning streak to the longest 10th session since the 10-day stretch in April.

The rally pushed Tesla’s valuation to $ 773.5 billion, Facebook Inc. It exceeded the evaluation value of.
+ 2.06%

With a valuation of $ 765.5 billion, Tesla will be the fifth largest US company by market capitalization. Tesla added nearly $ 105 billion in market value this week.

RBC Capital analysts, led by Joseph Spack, have raised the rating of Tesla shares from sale to hold, setting a price target of $ 339 to $ 700.

reference: Tesla and other EV makers report record sales and send stocks to new highs

“There’s no way to gracefully express this (even if the basic view so far isn’t too far away) other than saying that (Tesla’s) stock is completely wrong,” they said in a Thursday note. It was. “But in the light of the spirit of the New Year’s resolution and recent EV forecasts to 2050, we reassess (Tesla’s) position in the industry, growth opportunities and cheap access to capital.”

Of the 37 analysts surveyed by FactSet, 12 bought Tesla shares, 14 held and 11 evaluated selling, with an average price target of $ 455.71, suggesting a downside of more than 40%. I am.

“Our biggest failure was how (Tesla) used stock prices to raise capital cheaply and fund capacity spending and growth,” said an RBC analyst. Traditional car makers “need to generate a lot of cash from their existing businesses to fund the transition to electrification,” Tesla said, and Tesla could also use its share price to fund the acquisition.

“Even relatively large transactions are not important to (Tesla’s) market capitalization … In summary, rising stock prices provide some self-fulfillment of (Tesla’s) growth potential,” analysts said. It was.

The rise in Tesla stocks is due to investors betting that the Democratic-controlled Senate will prioritize clean energy policies amid a surge in stocks and alternative energy stocks in other EVs and EV-related companies in recent sessions.

Relation: GM’s sales declined over the year, but returned to pre-pandemic levels in the fourth quarter.

iShares Global Clean Energy ETF ICLN It has increased by almost 20% this week and 190% in the last 12 months. Nio Inc’s American Depositary Receipt. NIOChina-based EV maker has risen nearly 11% in a week and more than 1,500% in the last 12 months.By comparison, S & P500 Index
+ 1.48%

It has increased by 1.3% this week and about 18% in the last 12 months.

“Senate Blue is very bullish and a potential’game changer’for Tesla and the EV sector as a whole, and will definitely include a green-led agenda on the card over the next few years,” Wed said. Bush analyst Dan Ives said in a note on Thursday. ..

For Tesla and General Motors, “We believe that doubling EV tax credits and further consumer incentives and government initiatives for the EV sector will be a big plus.”
+ 0.79%
Fisker Inc., a privately held Rivian.
+ 2.27%
And other EV-related companies, he said.

Tesla December 21st Added to S & P500 Index. Stock prices fell in that session and the next, but have been on an uptrend ever since. Shares have risen more than 750% in the last 12 months, compared to an approximately 18% rise in S & P.

Tesla shares exceed $ 800 in hopes of “blue”, Wall Street upgrade Tesla shares exceed $ 800 in hopes of “blue”, Wall Street upgrade

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