7 Dec

Tesla: Jefferies Says ‘Buy,’ Raises the Target Price to $450

WRITTEN BY John Parker FEATURED IN Wall Street Ratings

Tesla 

On December 7, Tesla (TSLA) stock continues to swim against the current for the second consecutive day. At 11:10 AM EST, the stock rose 2.5%—compared to the S&P 500’s (SPY) 1.0% losses. The NASDAQ Composite Index and the Dow Jones Industrial Average fell 1.5% and 1.2%, respectively.

Tesla: Jefferies Says ‘Buy,’ Raises the Target Price to $450

Swimming against the current

As of December 6, Tesla has risen 3.6%. In contrast, the broader market (QQQ) has seen an intensified sell-off due to investors’ doubts about ongoing US-China trade negotiations. So far, the S&P 500 Index has lost 2.3% in December. During this period, General Motors (GM), Ford (F), and NIO (NIO) have lost 5.9%, 4.1%, and 4.4%, respectively.

In today’s session, the optimism about Tesla has mainly been driven by Jefferies’ rating upgrade. Jefferies upgraded its “hold” ratings on Tesla to “buy” on December 7, according to a CNBC report.  Jefferies also raised its target price on Tesla stock to $450 from $360 earlier. According to CNBC, Jefferies analyst Philippe Houchois said, “Tesla should continue to stand out with broader price points, battery security of supply, product edge and a brand that transcends the volume/premium divide.” The upgrade and Houchois’ positive outlook on Tesla boosted investors’ confidence.

Earlier in December, a Reuters report suggested that Tesla is speeding up the construction of its Gigafactory in China. Citing some sources and documents, the Reuters report said, “Tesla Inc has opened a tender process to build its Shanghai Gigafactory and at least one contractor has started buying materials.” Tesla’s upcoming Shanghai-based Gigafactory will likely help the company save the steep tariffs that it’s paying right now.

Visit Market Realist’s Automobiles page to stay updated on the auto industry’s latest news.

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