Argus Research raised its price target for shares of Tesla to $808 from $556, citing “continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3.”
“Despite past production delays, parts shortages, labor cost overruns, and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond.”
A research firm called ARK Invest, meanwhile, said late Friday it expects the stock to be worth at least $7,000 and possibly as much as $15,000 by 2024, adding there’s “a 25 percent probability” the shares will be at the upper end of that range by then.
Nelson told The Post that ARK’s five-year price target needs to be taken with “huge grain of salt,” and that investors should take care not to be swept up in the “euphoria.”
“We think a pullback is overdue,” Nelson said. “In 12 months, we think the stock is going to be lower than where it is today.”
Shares of Tesla have been on a tear despite predictions for a decline by numerous short sellers last year.
The stock jumped more than 15 percent last week after the company delivered its second consecutive profitable quarter and said its Model Y compact SUV has begun “ahead of schedule.”
Monday’s stock surge makes Tesla the second-most valuable car company in the world, with a $140.6 billion market capitalization that’s second only to Toyota’s.
New York Post