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has a new top price target on Wall Street. In fact, it has two new top price targets. Investors can be forgiven if they missed it, though.
The target prices come from overseas brokerage firms and show how Tesla is on the minds of just about every auto analyst around the globe.
On Friday, China Securities analyst Zhu Ye started coverage of Tesla (ticker: TSLA) with a Buy rating and $1,485 price target. That was almost matched by Mirae Securities analyst Park Yeon-Ju on Monday. Yeon-Ju boosted her target price to $1,466 from $937 a share. She rates shares Buy as well.
Both targets value Tesla at almost $1.5 trillion. Tesla has roughly 1 billion shares outstanding, making the math simple.
Tesla stock is up 4.6% in midday trading Monday. The new rating helps, but so did news that Tesla’s Germany facility would start production in December. What’s more, the market is bouncing back from Friday’s steep losses. The
Dow Jones Industrial Average
are up 1.6% and 1%, respectively.
Both new target prices top the old high of $1,400 a share from Jefferies analyst Philppe Houchois.
Exactly why the two analysts value Tesla at those prices is a mystery. Both didn’t return a request for their research reports. Ye works in Beijing, according to Bloomberg, and covers mainly EV and EV battery material stocks. Yeon-Ju works in Korea and covers the Korean auto sector — and Tesla.
The overseas coverage is one sign that Tesla is disrupting the entire auto industry.
EV’s appear to be taking over and most large global auto makers are pouring billions of dollars into vehicle electrification. Battery costs have fallen to the point where EVs can compete with gasoline powered cars regardless of government-mandated environmental policies.
Tesla, of course, led the charge by introducing the Model S back in 2012. Now most global auto makers are looking at Tesla as a benchmark for EV success.
About 45 analysts cover Tesla stock. It’s an interesting mix. At least five analysts are located in Asia. A few are located in Europe. At least five are primarily technology or renewable technology analysts. A couple of analysts covering the stock are generalists covering many industries. And the balance are traditional auto analysts.
Compare that to
(GM). About 25 analysts cover that stock, and a large majority of them are U.S. based automotive analysts.
Tesla stock now has about 22 Buy ratings and 13 Sell ratings. About half of the Buys come from non-traditional or non-U.S. auto analysts. That means Tesla is relatively more popular with tech analysts and analysts located in non-U.S. geographies where EV penetration as a percentage of new car sales is higher.
In China, EV penetration of new car sales hit about 20% in October. EV penetration in the U.S. is closer to 3%.
The 13 Sell ratings analysts have on Tesla stock are from a mash up of everyone — tech analysts, auto analysts, generalists and renewable energy analysts.
The average Tesla price target of Buy-rated analysts is now about $1,164 a share. The average price target of Sell-rated analysts is about $388 a share. The gap between bulls and bears remains wide, no matter where they are located.
Write to Al Root at firstname.lastname@example.org