On October 15th, Baird analyst Ben Kallo raised his (NASDAQ: TSLA) price target to $450 from $360, a significant, 25% increase from his previous price target for the California EV maker, as he is seeing potential upside for gross margin and credit revenue.
Ben Kallo also mentioned in his notes that the stock's (NASDAQ: TSLA) recent rally can lead the company to focus on growth over cost controls. He said regulatory credits can be a "significant swing factor" for Tesla, and believes the company's guidance for credit revenue to roughly double in 2020 could be conservative.
"With share prices at current levels, we think (Tesla Inc) may no longer be incentivized to maintain strict cost controls (particularly on the OpEx line) and could reprioritize investment in growth."
Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Vincent Y, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Vincent Y holds Tesla, Inc., shares (TSLA) and has no plans to buy/sell any positions within 72 hours.
_____________________________
We appreciate your readership! Please share your thoughts in the comment section below.
