By
Bena Ilyas
April 23rd, 2024
On Friday, Tesla stock closed at $489.61, or 9.66% down. Today, at the time of writing, TSLA stock is 7% up, trading at $524.11.
Tesla Inc (NASDAQ: TSLA) stock has recently received another price target upgrade. Analysts at Morgan Stanley (NYSE: MS) and Wedbush Securities have reviewed their estimates following the carmaker’s great performance. As a result, Tesla shares are in the green. Besides, Tesla stock has hit a new all-time highest closing price of $499.27 on November 19.
Morgan Stanley analyst Adam Jonas has updated the price target for Tesla stock from $360 to $540. Besides, he upgraded Tesla’s rating from “Equal-Weight” to “Overweight.” As the analyst has explained, he is expecting the company’s vehicle population to rapidly grow. As a result, Tesla’s revenue will rise as well.
Jonas stated:
“We conservatively estimate Tesla’s Network Services business to account for between ~1-2% of revenue today, rising to over ~6% by 2030 by which time we forecast services to account for ~18-20% of total company EBITDA. This forecast assumes 12mm Monthly Active Users (MAUs) by 2030 (60% penetration of Tesla’s global fleet) at $100 monthly Average Revenue Per User (ARPU) and a 60% blended EBITDA margin.”
He further said:
“We value Tesla Network Services at $164 per Tesla share, accounting for ~91% of our Tesla price target increase to $540 from $360 previously. Given Network Services accounts for 18.9% of our group EBITDA by 2030, but accounts for 30% of our revised $540 price target, we are implying a substantially higher multiple for this business which is more akin to high growth SaaS comps than to mobility/tech hardware comps.”
Wedbush analyst Daniel Ives raised the price target on Tesla stock as well. His gauge is $560.00 per Tesla share. Maintained a Neutral rating on the company, Ives is anticipating a growing demand for electric vehicles and as a result, the company’s growth in both Europe and China.
On Friday, Tesla stock closed at $489.61, or 9.66% down. Today, at the time of writing, TSLA stock is 7% up, trading at $524.11.
Inclusion of Tesla in the S&P 500 Index Has Impact on Its Stock Price Target
Recently, Tesla stock was included in the S&P 500 market index. With a market cap of over $400 billion, Tesla has become one of the richest S&P 500 companies. It has surpassed Toyota (NYSE: TM), Volkswagen (XETRA: VOW), and General Motors (NYSE: GM) together. Besides, its market cap is higher than 95% of the US blue chips.
Tesla CEO Elon Musk has significantly climbed up the ladder of the world billionaires set to overtake Facebook’s (NASDAQ: FB) Mark Zuckerberg. Due to the inclusion in the S&P 500, he received an additional $15 billion to his net worth. Now, his fortune makes up $117.5 billion, which is the highest performance among the top 500 billionaires after amassing $90 Billion in 2020.