Despite a rapid recovery in recent weeks, tesla (NASDAQ:TSLA) Stock prices have been tough this year. However, one analyst believes the recent rally is likely to continue. Cantor Fitzgerald analyst Andres Shepard has just begun reporting on the major electric vehicle (EV) maker in which he recommends buying Tesla stock.
Kantar’s principal equity research technology analyst has presented various possible scenarios and resulting stock prices, but believes the most likely outcome from Tesla’s business plan would be a stock price of $230. . This would be a 27% increase from Tesla’s Friday closing price.
Self-driving software and cheaper cars
It may not be unusual or surprising that analysts think: autonomous driving software And lower-priced vehicles could be a factor in boosting Tesla’s stock price. Shepherd expects Tesla’s recent price cut for its Full Self-Driving (FSD) software to $99 per month to boost sales this year.
He believes Tesla stock is worth $230 per share in a base case. But if Tesla can successfully roll out a lower-priced model starting next year, he believes car sales could reach 2.8 million in 2025. Current early estimates are that Tesla will ship about 2.1 million EVs next year.shepherd Stock could trade at $460 per share If it can reach that volume level next year, FSD sales will reach $2 billion in 2025.
However, investors should consider what could happen if these predictions come wrong. Shepherd’s bear case is if Tesla’s sales remain around the 2 million level even in 2025 and FSD’s revenue does not increase. If that happens, he thinks the stock will drop to $70.
I think Shepard’s basic case makes sense. Tesla will only be a solid investment going forward if its self-driving software and more affordable EV products increase sales.
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howard smith I have a position in Tesla. The Motley Fool has a position in and recommends Tesla. The Motley Fool has Disclosure policy.
Will Tesla stock reach $230? 1 Wall Street analysts think so. Originally published by The Motley Fool