Tesla share price climbs as expectations soar
Tesla looks like breaking its share price record today after Deutsche Bank upgraded its stock rating to buy, from hold.
Deutsche joins Morgan Stanley (MS) in giving Tesla a buy rating, with MS putting a stock target of $320.
The German bank decided to upgrade Tesla on the basis of its forecasts at the end of July, where the electric car manufacturer adjusted growth expectations and announced a more varied cohort of cars.
Tesla, owned by entrepreneur Elon Musk, expects to ship 100,000 cars in 2016 – a much larger amount than the original estimates of around 30,000 foresaw. It is planning to launch the Tesla Model X, an SUV, which should help it reach that mark.
Deutsche said:
At this point we see an increasingly clear path to 500,000 units of annual production by late this decade. And we don’t expect growth to end there, as Tesla is already contemplating opportunities for additional production capacity
JP Morgan and Goldman Sachs are still maintaining Tesla stocks as neutral, but the markets have been impressed in early trading. Tesla was up 5.2 per cent at pixel time to $261.08.