Tesla Inc. stock accumulated. towards a high-end Thursday, inspired by one update and hopes the “blue” Senate will be a potential “game changer” for Silicon Valley electric car maker and companies EV and other energy.
Tesla TSLA,
shares traded as high as $ 811.61, an intraday high, extending their winning climb to the 10th session, the longest period since a 10-day stretch in April.
Analysts at RBC Capital, led by Joseph Spak, raised their rating of Tesla stock to their same level of ownership, from sales, and set a price target of $ 700, up from $ 339 previously.
See also: Tesla and other EV makers report record sales, pushing stocks to new heights
“There’s no gracious way to go about this but to say that we got a stock (Tesla) completely wrong (even though our basic outlook so far hasn’t been too far off),” they said. the note Thursday. “But in the spirit of New Year’s resolutions and as a result of our recent EV forecast through the 2050 report, we will be reassessing (Tesla’s) place in the industry, growth opportunity and free access to calpa. ”
Of the 37 analysts surveyed by FactSet, 12 consider Tesla stock to be buying, 14 consider it a grip, and 11 sell it, with an average price target of $ 455.71, representing a reduction of more than 40%.
“Our biggest loss was how (Tesla) can take advantage of its stock price to raise capital cheaply and finance money and growth,” RBC analysts said. Traditional carmakers need to “generate a lot of money from existing work to fund the transition to electrification,” and Tesla can also use their stock price to buy money, they said.
“Even a medium-sized contract would be largely on a market cap (Tesla)… To sum it up, the stock price is slightly higher self-fulfilling to growth potential (Tesla),” said analysts.
The rise for Tesla shares came amid steep gains for shares of other EV and EV-related companies and energy stock in recent sessions, as investors pledge that a Democratic-controlled Senate will prioritize clean energy policies.
Related: GM sales are falling for the year, but kicked back to pre-pandemic levels in Q4
The iShares Global Clean Energy ETF ICLN has gained nearly 20% this week and 190% in the last 12 months. American investment receipts of Nio Inc. NIO, a China-based EV maker, nearly 11% a week and more than 1,500% in the past 12 months. In contrast, the S&P 500 SPX index,
has gained 1.3% this week and around 18% in the last 12 months.
“Blue Assembly is a very bullish and potential ‘game player’ for Tesla and the EV sector in general, with a greener agenda now definitely in the cards for the next few years, ”Wedbush analyst Dan Ives said in a note on Thursday.
“We anticipate a doubling down on EV tax credits and further consumer incentives and government initiatives around the EV sector on the horizon which is very optimistic” for Tesla as well as General Motors Co. GM,
Rivian Private, Fisker Inc. FSR,
and other EV-related companies, he said.
Tesla was added to the S&P 500 index Dec. 21. The stock fell that session and next, but has been on an upward path ever since. The stock has gained over 750% in the last 12 months, compared to gains of around 18% for the S&P.