Tesla Motor Co. (NASDAQ: TSLA) is continuing its impressive performance in the stock market. At the close on Thursday, the stock was up 4.32% for a record closing of $593.38.
The company’s potential as an electric vehicle manufacturer and its sustained profitability has attracted investors at all levels. A stock split earlier this year has also contributed to heightened activity.
A new target price and an upgraded rating from Goldman Sachs is the latest driver that could send this stock even higher.
Goldman Sachs is Bullish
Goldman Sachs, one of the world’s largest and most successful investment banks, has upgraded its rating for Tesla, implying an upside of 30% over today’s price. According to Goldman Sachs, the company has a strong integrated model and the ability to deliver a complete ecosystem to its customers with electric vehicles, home solar stations, and charging solutions throughout the United States, Europe, and other key markets.
Goldman Sachs is confident that the stock could hit a price of $780 in the mid-term. The previous estimate was pinned at $455.
Tesla has now beat earnings expectations for two consecutive quarters. It has also been added to the S&P 500 because of its profitability. Shares are up more than 600% in the year so far. The new target from Goldman Sachs will attract investors who previously thought that the stock had little room for movement. An upside of 30%, even at today’s price, will make the shares more compelling for investors who were previously waiting on the sidelines.
Tesla is Outperforming Other Electric Vehicle Stocks
Other pure-play electric vehicle stocks have vastly underperformed Tesla. Xpeng Inc. (NYSE: SPEV), a Chinese manufacturer, has seen its stock decline -19.37% in the last five days. Nio Inc. (NYSE: NIO), another popular electric vehicle stock, is down -15.53% over five days.
For investors looking to get into the electric vehicle market early, Tesla remains the most viable pick. Gasoline vehicles will continue to dominate the market in pure volume for at least the next ten years, but there is no question that electric vehicles are the future. With Tesla’s massive head start over major automakers and newcomers alike, it’s hard to ignore it as a growth option right now.
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