Teslaof (Nasdaq stock code: TSLA) The new battery technology is expected to accelerate the growth of the electric vehicle market and expand its leading position among competitors.
Deutsche Bank analyst Emmanuel Rosner said so. On Wednesday, Rosner upgraded Tesla’s stock rating from hold to buy, and raised its price forecast from $400 to $500. His new target represents that the current stock price of the stock is close to $395, which may bring about 27% of potential returns to shareholders.
Rosner praised Tesla’s goal of cutting battery costs by more than half in the next three years, which he said could greatly increase its sales and profit margins. In turn, he predicts that by 2025, Tesla will produce more than 2 million electric vehicles, earning $15 per share. Therefore, he urged investors to use Tesla’s recent retracement to buy shares at a substantial discount to its recent highs.
Will Tesla’s stock price rise to $500?
After Rosner’s upgrade, news broke that California plans to phase out gasoline-powered cars in response to climate change. Governor Gavin Newsom (Gavin Newsom) issued an executive order requiring all new passenger cars sold in the state by 2035 to achieve zero emissions. It also requires state agencies to work with businesses to “accelerate the deployment of affordable refueling and charging options.
If California’s leadership in the fight against climate change prompts other states to develop similar plans, it may accelerate the adoption of electric vehicles. This is a boon for industry leader Tesla, which will push its stock price to $500 or more in the next few years.