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On Friday, Tesla stock closed at $489.61, or 9.66% down. Today, at the time of writing, TSLA stock is 7% up, trading at $524.11.
Tesla Inc (NASDAQ: TSLA) stock has recently received another price target upgrade. Analysts at Morgan Stanley (NYSE: MS) and Wedbush Securities have reviewed their estimates following the carmaker’s great performance. As a result, Tesla shares are in the green. Besides, Tesla stock has hit a new all-time highest closing price of $499.27 on November 19.
Morgan Stanley analyst Adam Jonas has updated the price target for Tesla stock from $360 to $540. Besides, he upgraded Tesla’s rating from “Equal-Weight” to “Overweight.” As the analyst has explained, he is expecting the company’s vehicle population to rapidly grow. As a result, Tesla’s revenue will rise as well.
Jonas stated:
“We conservatively estimate Tesla’s Network Services business to account for between ~1-2% of revenue today, rising to over ~6% by 2030 by which time we forecast services to account for ~18-20% of total company EBITDA. This forecast assumes 12mm Monthly Active Users (MAUs) by 2030 (60% penetration of Tesla’s global fleet) at $100 monthly Average Revenue Per User (ARPU) and a 60% blended EBITDA margin.”
He further said:
“We value Tesla Network Services at $164 per Tesla share, accounting for ~91% of our Tesla price target increase to $540 from $360 previously. Given Network Services accounts for 18.9% of our group EBITDA by 2030, but accounts for 30% of our revised $540 price target, we are implying a substantially higher multiple for this business which is more akin to high growth SaaS comps than to mobility/tech hardware comps.”
Wedbush analyst Daniel Ives raised the price target on Tesla stock as well. His gauge is $560.00 per Tesla share. Maintained a Neutral rating on the company, Ives is anticipating a growing demand for electric vehicles and as a result, the company’s growth in both Europe and China.
On Friday, Tesla stock closed at $489.61, or 9.66% down. Today, at the time of writing, TSLA stock is 7% up, trading at $524.11.
Inclusion of Tesla in the S&P 500 Index Has Impact on Its Stock Price Target
Recently, Tesla stock was included in the S&P 500 market index. With a market cap of over $400 billion, Tesla has become one of the richest S&P 500 companies. It has surpassed Toyota (NYSE: TM), Volkswagen (XETRA: VOW), and General Motors (NYSE: GM) together. Besides, its market cap is higher than 95% of the US blue chips.
Tesla CEO Elon Musk has significantly climbed up the ladder of the world billionaires set to overtake Facebook’s (NASDAQ: FB) Mark Zuckerberg. Due to the inclusion in the S&P 500, he received an additional $15 billion to his net worth. Now, his fortune makes up $117.5 billion, which is the highest performance among the top 500 billionaires after amassing $90 Billion in 2020.
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Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
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