This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
The stock of Tesla (NASDAQ: TSLA) raced out of the gate Monday morning after the world’s most famous electric vehicle (EV) stock won an endorsement from Barron’s magazine over the weekend, followed by a second endorsement from Credit Suisse this morning.
The Tesla share price finished Monday’s session up 10.68% to $936.72 .
So what
On Saturday, Barron’s called Tesla stock a better buy than either General Motors (NYSE: GM) or Ford (NYSE: F).
Tesla just finished reporting strong fourth-quarter profits, Barron’s said, yet its stock suffered its third-worst post-earnings sell-off in history as investors fretted over the lack of new Tesla models being brought to market in 2022.
But this week, investors will get a chance to compare the EV maker’s results to those of Ford and GM, and Barron’s believes this will make it very clear how much faster Tesla is growing than its rivals — and why the stock may be worth its forward earnings multiple of 83.
Seconding that emotion this morning, investment bank Credit Suisse Group upgraded shares of Tesla to outperform, with a $1,025 price target, StreetInsider.com reports.
Now what
Credit Suisse said it expects “further volume growth and sustained margin strength for Tesla” and “positive EPS revisions,” noting that its predictions for the EV maker’s 2022 profits are a good 25% ahead of what the rest of Wall Street is expecting.
“Tesla remains the leader of the multi-decade secular transition to EVs,” the bank said, with a product lead over its rivals and no problems with demand. The only question is whether Tesla can produce cars fast enough to keep up with that demand. This gives it incredible pricing power, which is reflected in its profit margins: 50% better than what General Motors produces, and five times better than Ford.
Credit Suisse thinks this makes Tesla the car company — and the car stock — to beat.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Why Tesla stock was on fire today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Tesla right now?
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*Returns as of January 13th 2022
More reading
- Why Tesla stock just tumbled 12%
- 5 best shares to bet on electric cars right now
- 2 reasons Tesla stock is toast today
- Tesla stock is back above $1,100. Is the EV leader a buy?
- Top 5 stocks mentioned on Reddit’s WallStreetBets right now
Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
from The Motley Fool Australia https://ift.tt/qEpJbt0QC
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