A Jefferies analyst sees Tesla rising 30% in 12 months, even as Elon Musk sells stock. Here's why he has the most bullish call on Wall Street.

Asia's Tech News Daily

A Jefferies analyst sees Tesla rising 30% in 12 months, even as Elon Musk sells stock. Here's why he has the most bullish call on Wall Street.
© Aly Song/Reuters Tesla CEO Elon Musk walks in front of a Model Y image in Shanghai. Aly Song/Reuters

  • Jefferies’ Philippe Houchois has the most bullish Tesla forecast on Wall Street, seeing a 30% rise in the next 12 months.
  • He says Tesla could eventually become the “everything energy company,” in the same way Amazon is the “everything store.”
  • Houchois thinks Tesla’s profit margins will stay strong, even as it takes on legacy auto rivals by releasing cheaper models.

Elon Musk may be selling Tesla stock at a rapid pace — but one veteran strategist sees the share price jumping another 30% over the next 12 months and recommends that investors buy it.

Philippe Houchois, autos analyst at Jefferies, has the most bullish 12-month price target on Wall Street at $1,400. That compares with Tesla’s Friday morning price of $1,074.

He reckons Tesla will continue to rapidly scale up production and maintain strong profit margins, even as it produces cheaper models to better compete with legacy car companies.

In the future, Houchois told Insider, Tesla could even become the “everything energy company,” in the same way Amazon is the “everything store.”

Tesla’s stock price has skyrocketed roughly 1,500% over the last two years. Investors, flush with cash from the huge coronavirus-era stimulus packages, have piled into the company, betting that it will lead the green revolution in transport.

There is still an army of skeptics who say that Tesla’s stock price — it’s now the biggest carmaker in the world by market capitalization — is all out of proportion. Critics argue that Tesla has a long history of underdelivering, and that its market valuation is based on highly speculative predictions about future sales.

Yet Houchois said: “​​The way Tesla is structured — or their strategy — is they basically challenge, at multiple levels, the way the industry operates: the way cars are designed, the way cars are sold, the software.”

He’s been impressed with Tesla’s recent results. It delivered its ninth-straight profitable quarter in the third quarter, with an operating margin (a key measure of profitability) of 14.6%, up 10 percentage points from two years earlier.

Houchois pointed out that Tesla is more than twice as profitable as Volkswagen. And he sees numerous factors, including Tesla’s direct-sales model, as helping preserve its strong margins.

The analyst said Tesla’s self-professed aim of ramping up production to 20 million cars by 2030, from an estimated 890,000 in 2021, is “outrageous” and won’t happen. That said, he’s willing to consider a scenario where Tesla produces more than 8 million cars by that point, giving it a roughly 10% share of the global market.

Houchois, who’s worked on Wall Street for more than 15 years, said Tesla’s plans to produce a cheaper car would help it seize market share from older companies.

The automaker has long planned a $25,000 car, which could come in 2023. But critics say Tesla’s history of delays — the Roadster 2, Cybertruck, and Semi rollouts have all been pushed back — mean it’s far from certain to arrive any time soon.

Tesla is a clean-energy company as well as a car company, however, and Houchois said this gives it an edge in a world fast transitioning away from fossil fuels, with the two focuses complementing each other.

“It’s almost like the way that Amazon, from a book-seller, became the ‘everything store.’ Then the long-term bullish story is Tesla becomes ‘everything energy.'”

Many others on Wall Street are far from convinced. JPMorgan analyst Ryan Brinkman, for example, has a 12-month target price of $250.

He said in his last note in October that Tesla’s target to deliver 20 million cars by 2030 is “extreme blue-sky” thinking. “And yet, something much more than this seems already baked into the shares, given Tesla’s market capitalization today.”

Read the original article on Business Insider

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Ukraine-Konflikt: Kreml wirft den USA "falsche Anschuldigungen" vor

© Keystone/Pool Sputnik Kremlin/AP/Alexei Nikolsky Der Kreml hat den USA angesichts der Spannungen um die Ukraine “falsche Anschuldigungen” gegen Russland und die Verbreitung von Lügen vorgeworfen. Kremlsprecher Dmitri Peskow sagte ... Read more »

Marcelo Bielsa says players like Tyler Roberts and Joe Gelhardt give Leeds hope but he did not want Cody Drameh loan move

Plus: How Illan Meslier is faring as Leeds' ever-present in an injury-hit squad; follow West Ham vs Leeds live on Sky Sports Premier League and Main Event from 1pm on Sunday; kick-off 2pm; watch free highlights shortly after full-time on Sky Sports website and app Read more »

Piers Morgan's wife says women ‘only find him hot when they're drunk' – and she's one of them

PIERS Morgan has revealed that his wife told him that women only find him attractive when they're drunk. The presenter recently came out top on ‘Most Popular Beer-Goggles Pin-up’ poll, ... Read more »

Conor Coady describes ‘incredible moment' after ending his long Molineux drought

© PA Wire Conor Coady had not scored at Molineux for six years (Bradley Collyer/PA) – PA Wire Wolves skipper Conor Coady was delighted after ending his six-year Molineux goal ... Read more »

Bongbong, Sara want to end runaway pork prices

Bongbong, Sara vow to improve sports among youth in Mindanao The Ferdinand “Bongbong” Marcos Jr. and Davao City Mayor Sara Duterte tandem said Sunday that it will seek to stop ... Read more »

The Benin international who lit up Sligo

INITIALLY, WHEN Romuald Boco answers The42’s call, he politely asks to ring back in 20 minutes. His young son is on the verge of sleep after an exciting day out. It ... Read more »

Gardaí appeal for information on man's body found in 'unexplained circumstances' in Donegal

© Shutterstock Damien Storan File photo. GARDAÍ ARE CONTINUING to investigate the circumstances surrounding the discovery of a man’s body in “unexplained circumstances” in Co Donegal on Friday. The body ... Read more »

Kym Marsh wants to return to Coronation Street one day

© Bang Showbiz Kym Marsh wants to return to Corrie one day Kym Marsh “has no doubt” she’ll return to ‘Coronation Street’ one day. The 41-year-old star played Michelle Connor ... Read more »

Roy Keane tells Ralf Rangnick he must build his Man Utd team around three players

Roy Keane says Manchester United should build their team around Cristiano Ronaldo, Bruno Fernandes and Raphael Varane. The Red Devils legend had backed the idea of a rebuild at Old ... Read more »

While Boris Johnson partied in the sun, I sweated in PPE, saving lives

Forget Annabel’s – the place to be for the professional “partygoer” is Downing Street, especially during a pandemic. But it is invitation-only for the “in crowd” of government advisers, civil ... Read more »

COVID program delivers 1 billion doses to poorer countries

FILE – A shipment of COVID-19 vaccines distributed by the COVAX Facility arrives in Abidjan, Ivory Coast, Friday Feb. 25, 2021. The World Health Organization says a U.N.-backed program shipping ... Read more »

Piers Morgan blasts ‘liar' and ‘cheat' Novak Djokovic after rejected appeal

Nine-time tennis champion Novak Djokovic is set to be deported after losing his judicial review against the cancellation of his visa. © Getty Images Novak Djokovic Chief Justice James Allsop’s ... Read more »

Tennis-Djokovic's absence from Australian Open loss for game - ATP

By Sudipto Ganguly © Reuters/LOREN ELLIOTT FILE PHOTO: Serbian tennis player Novak Djokovic practices at Melbourne Park MELBOURNE (Reuters) – A court decision on Sunday to uphold Novak Djokovic’s Australian ... Read more »

Lionel Messi: Full list of teams Barcelona & PSG icon has scored against

Lionel Messi has sent records tumbling across a stunning career at the very highest level, with an iconic spell for the Argentine at La Liga giants Barcelona now being followed ... Read more »

Ending religion lessons in schools leads to overall decline in belief but not morals

Losing My Religion was one of the defining songs of my youth, thanks to REM. Rather more importantly (unless you care a lot about teenage angst) our collective loss of ... Read more »

Hearts linked to prolific striker with 42 goals in 18 months and Robbie Neilson has the inside track

Hearts have been linked with prolific Chesterfield striker Kabongo Tshimanga to resolve Robbie Neilson’s attacking needs. © Kabongo Tshimanga is reportedly a Hearts target. (Photo by Alex Burstow/Getty Images) Last ... Read more »

UK weather forecast: Exact date snow will fall as Brits will see Arctic blast hit parts of country

FORECASTERS say that heavy snow could blanket London before the end of January, so make sure you're wrapping up warm! WX Charts predicts snow will fall in Scotland on Friday, ... Read more »

Piers Morgan fans go wild as he returns to breakfast TV after nearly a year – with cheeky dig at ITV

PIERS Morgan returned to breakfast TV today for the first time in nearly a year. The 56-year-old star appeared on the BBC's new Sunday Morning show to review the papers ... Read more »

Sudan pro-democracy faction agrees to UN-brokered talks

© Provided by Al Jazeera The group said it accepted the invitation to dialogue between the parties to the Sudanese crisis [File: Mahmoud Hjaj/Anadolu Agency] A prominent Sudanese pro-democracy group ... Read more »

Source claims Celtic closing in on £5m transfer; talkSPORT man says it will 'definitely' happen

© Provided by Transfer Tavern Jota-Celtic Former Premier League striker Gabby Agbonlahor has been reacting to an update in Celtic’s pursuit of making Jota’s loan move permanent, as per Football ... Read more »

ATP blasts Novak Djokovic saga as 'deeply regrettable' in strongly-worded statement

Novak Djokovic’s court hearing on Sunday brings to an end a ‘deeply regrettable’ saga, the ATP have said in a strong statement. The World No 1 has had his visa ... Read more »

A year after GameStop, Wall Street is still scared of the power of retail traders — and is tracking them closely

© Pavlo Gonchar/SOPA Images/LightRocket via Getty Images The GameStop frenzy, powered by WallStreetBets, unnerved traditional investors in January 2021. Pavlo Gonchar/SOPA Images/LightRocket via Getty Images Wall Street is still wary ... Read more »

Former SpaceX engineer says his pizza-making robot, located across the road from Elon Musk's HQ, sprayed cheese everywhere during testing

© Stellar Pizza Stellar Pizza CEO Benson Tsai standing outside truck. Stellar Pizza Ex-SpaceX engineer said his pizza-making robot sprayed cheese everywhere during initial testing. CEO Benson Tsai, who worked ... Read more »

PIF plotting Newcastle offer for “perfect” £22.5m dynamo, he'd be a major upgrade - opinion

© Provided by Football FanCast manchester united midfielder donny van de beek during warm up against west ham in the fa cup fifth round With Newcastle United 19th in the ... Read more »

I jumped two floors from a shopping centre to be reunited with murdered daughter … it felt like she was calling me

A GRIEVING mum jumped from the second floor of a shopping centre to be reunited with her murdered daughter. Cherie Rangeley tried to take her own life after hearing the ... Read more »

Ravi Ashwin's brilliant reaction to Virat saga, says Kohli 'left behind headache for his successor'

© Provided by DNA Ravichandran Ashwin never minces his words, the veteran spinner is not only one of the greatest minds in the world of sport, but he also speaks ... Read more »

From Rubina Dilaik to Jennifer Winget to Rucha Hasabnis, fans suggest next female lead for Naagin 6

© Provided by Jagran English New Delhi | Jagran Entertainment Desk: Ekta Kapoor is definitely a famous name in the industry, the television producer has produced many famous serials and one ... Read more »

LIVE Cricket Score, Sri Lanka vs Zimbabwe, 1st ODI at Pallekele

© Provided by Firstpost LIVE Cricket Score, Sri Lanka vs Zimbabwe, 1st ODI at Pallekele Toggle between the tabs above to switch between quick scorecard, full scorecard and ball-by-ball commentary ... Read more »

Philippines logs 37,154 new COVID-19 cases; active infections at 287,856

An LRT1 passenger undergoes a COVID-19 antigen test at the EDSA-Taft station on Tuesday, January 11, 2022. The Department of Transportation (DOTr) is conducting random antigen tests on consenting passengers ... Read more »

Till January 31, schools in Tamil Nadu shut for 10-12 grades too

The Tamil Nadu government on Sunday declared holiday till January 31 for school students of standards 10-12 too in the wake of surging COVID cases. Examinations scheduled from January 19 ... Read more »

Umno mungkin akan bertanding di Bugaya jika PRK diadakan, kata Bung

© Provided by Free Malaysia Today Bung Moktar Radin mengakui pengaruh Presiden Warisan Shafie Apdal masih kuat di Bugaya, namun situasi politik sekarang dilihat semakin berpihak kepada BN. (Gambar Bernama) ... Read more »

Covid restrictions extended till 31 Jan

© Provided by The Statesman Covid restrictions extended till 31 Jan Amidst rising Covid cases, state government today extended Covid related restrictions till 31 January but allowed fairs to be ... Read more »

No justification now for keeping schools closed in view of COVID-19: World Bank Education Director

There is no justification now for keeping schools closed in view of the pandemic and even if there are new waves, closing schools should be the last resort, according to ... Read more »

Will 'Brand Yogi' Spell Magic for BJP? Party Walks the Line Between Hindutva, Caste Politics

© Provided by News18 Will ‘Brand Yogi’ Spell Magic for BJP? Party Walks the Line Between Hindutva, Caste Politics When the BJP stormed to power in Uttar Pradesh after the ... Read more »

Mark Wood gets his rewards to give England victory shot

© Getty Images Mark Wood jumps for joy after claiming his fifth wicket © Getty Images Mark Wood targeted two things in the build-up to this Hobart Test, over and ... Read more »

Javed Akhtar Birthday Special: From Tere Liye to Tumko Dekha Toh, 7 songs penned by lyricist that are food to our soul

© Provided by Jagran English New Delhi | Jagran Entertainment Desk: Legendary lyricist Javed Akhtar doesn’t need any introduction his name is enough for people to go gaga over his ... Read more »

Pankaj Tripathi shares precious photos as he celebrates 17th wedding anniversary with wife Mridula

© Provided by Pinkvilla Pankaj Tripathi and wife Mridula Tripathi are celebrating their 17th wedding anniversary today and the actor took to social media to share some precious moments. Pankaj ... Read more »

Donald Trump reiterates claims that 2020 US presidential election was stolen

© Provided by WION In a crowd-pleasing speech in Arizona on Saturday (January 15), former United States President Donald Trump reiterated unfounded claims that the 2020 presidential elections were stolen ... Read more »

India's Navdeep Kaur wins Best National Costume award for her Kundalini Chakra dress at Mrs World 2022

It is a proud moment for India as Navdeep Kaur, who was crowned Mrs India World 2021, won the Costume Round as she represented the country at Mrs World 2022. ... Read more »

Rylan Clark reveals he was hospitalised after suffering breakdown following split with husband

RYLAN Clark has revealed he was hospitalised after suffering a breakdown after he split from husband Dan Neal. The Strictly spin-off host, 33, said: “I didn’t think I’d be here. ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic