CFRA Increases Tesla Price Forecast to USD 420 a Share

The Center for Financial Research & Analysis LLC (CFRA) has increased its price forecast for Tesla Inc (NASDAQ: TSLA) from USD 420 a share, matching the price target the company’s CEO Elon Musk has indicated in a tweet earlier this year.

In addition to production concerns, Tesla investors have also been worried about competition. The electric car market is becoming more crowded, and in the comping years new fully electric models by major brands are expected to hit the market. The CFRA analysis indicates however, that Tesla’s lower priced Model 3 versions will help the innovative car maker to brush off the competition.   

In a report by Bloomberg analyst Garrett Nelson of CFRA explained, “While TSLA will face increased competition in the electric-car space in 2019, we see limited impact on sales, as TSLA’s brand strength and the gradual introduction of lower-priced Model 3’s undercuts competitors.”

Other economic concerns such as the U.S’s trade war with China, are also addressed in the CFRA report. According to Marketwatch, analyst Garrett Nelson of CFRA said in a note that, “We expect unit costs to continue to fall, reflecting improved operating efficiencies and fixed cost absorption… We also view the U.S.-China ‘tariff truce’ as having positive gross margin implications.” 

Optimism about the company’s ability to deliver high production volumes has increased, after Tesla has posted its largest profit ever in the 3rd quarter of this year. Bloomberg reported that Elon Musk sent an email to Tesla employees outlining top priorities that include stabilizing Model 3 production at 7,000 cars a week and working to improve costs so the company can build and sell the USD 35,000 version.

5 Comments
  1. Ross Gerber 1 week ago
    Reply

    Incredible story. Guy drunk driving at 3 am in a Tesla model3 on autopilot. He passes out. Cops can’t stop him so they pull in front and slow down. Car comes to a stop. No one hurt. Amazing. Thank god for autopilot or someone could have died. $tsla

    • Wyatt Stovall 7 days ago
      Reply

      who in the world is buying $TSLA here. How many analysts should say $420 before we break highs? Way overvalued here imo.

  2. Mike Capos 1 week ago
    Reply

    I think analysts need to start taking account that every vehicle $tsla makes moving forward can serve as a cost reduction lever. Semi vastly reduces freight expense, Pickup reduces mobile service fleet expense, storage reduces energy expense, etc.

  3. Jake Renfro 1 week ago
    Reply

    $TSLAQ $TSLA For European customers that 60K euro Model 3s are like $75K cars for Americans, due to currency valuations, higher taxation and a bit lower purchasing power. That is severely limiting the potential customer base.

    • David Paul 1 week ago
      Reply

      $tsla cannot make any money sub $45k on model 3 it looks like. So they try and sell them for daft money in Europe. They will get laughed at. I also note no China orders open, because they have no chance at that price to to massive competition $Tslaq incoming

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