Tesla‘s (NASDAQ: TSLA) The new battery technology promises to accelerate the growth of the electric vehicle market and expand its advantage over its competitors.
That’s what Deutsche Bank analyst Emanuel Rosner says. On Wednesday, Rosner raised its rating on Tesla shares from custody to buy and raise its price forecast from $ 400 to $ 500. Its new target represents a potential profit for shareholders of about 27% of the current share price of nearly $ 395.
Rosner welcomed Tesla’s goal of cutting battery costs by more than half over the next three years, which he said could significantly improve sales and profit margins. In turn, he expects Tesla to produce more than 2 million electric cars and $ 15 earnings per share by 2025. Thus, he urges investors to use the recent withdrawal of shares to buy shares at a significant discount from its recent peaks.
Are Tesla shares targeting $ 500?
Following Rosner’s upgrade, news emerged that California plans to phase out gasoline-powered cars as a means of combating climate change. Gov. Gavin Newsum issued an executive order requiring all new passenger vehicles sold in the state to have zero emissions by 2035. He also called on government agencies to work with businesses to “accelerate the deployment of affordable charging and charging options.” “.
If California’s leadership in the fight against climate change prompts other states to adopt similar plans, it could accelerate the adoption of electric vehicles. That would be a boon for industry leader Tesla and could increase its stock to $ 500 or more in the coming years.