Tesla gets a fresh price target and an interesting suggestion from Jefferies
Yesterday at 09:31 AM
Tesla (NASDAQ: TSLA) had its price target bumped by more than 30 percent on Thursday as analysts at Jefferies increased their estimates for the stock from $195 to $300.
The firm also suggested Tesla make a specific move to take advantage of its recent stock surge, which was mostly fueled by the presidential election, which saw Donald Trump, a Musk ally, as the winner.
Jefferies analysts said that the price target bump can be attributed to Tesla’s strong expanding ventures, like Megapack, and how they operate as significant free cash flow contributors to the company’s financials.
Furthermore, the potential strength of Full Self-Driving, Optimus and internal battery advancements on the stock promotes more opportunities for investors. However, the firm states while these are positives, their potential returns are unclear.
As for the capital raise, Jefferies says this is the perfect time to perform one due to favorable conditions post-election:
“Assuming markets remain competitive, de-regulation raises the growth path but also the investment requirements for Tesla and competitors.”
The additional capital could also support Tesla’s lofty ambitions into high-cost ventures, like Robotaxi and humanoid robots.
Tesla shares are up over 50 percent in the last month, gaining significant value due to the results of the U.S. Presidential election. CEO Elon Musk, who campaigned to get Trump back in the White House, has also been given a role in Washington, as he and Vivek Ramaswamy will head the Department of Government Efficiency (DOGE).
Why Tesla should benefit from Musk’s new DOGE role in Trump White House: Wedbush
Shares have gained quite a few price target increases due to Trump’s win last Tuesday, with many analysts pointing to easier maneuverability for Tesla from a regulatory perspective, especially as the company is working toward launching a driverless Robotaxi platform in the coming years.
Dan Ives of Wedbush, who also increased his price target last week from $300 to $400, explained in a note:
“…we believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years. We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era.”
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