Tesla (TSLA:NASDAQ) shares soared to new highs Monday after a major Wall Street research firm Piper Jaffray raised its price target on Tesla by 65% to $368. News of the upgrade sent Tesla shares soaring to new highs, catapulting the stock to an over 40% gain this year.
“We have driven a Tesla for seven months in preparation for this report, and after conducting investor meetings with the company last week, we’re finally ready to take a stand,” said Alexander Potter an analyst at Piper Jaffray. Potter further noted that Tesla has a “captivating impact on consumers and shareholders alike”, something that gives the Elon Musk-led company a competitive advantage that will be difficult to replicate.
“In many ways, TSLA seems to play by its own rules,” says Potted, adding that Tesla continues to burn through cash at a rate that “better-established companies would likely be crucified for,”. Combined with “unreasonably fast” production timelines, and a model that “spurns industry norms,” referring to Tesla’s direct to consumer sales model, has prompted Piper Jaffray to change its rating on the stock from $223 to $368.
The new rating is the highest price target set on Tesla by a major Wall Street research firm, according to FactSet. Tesla held a $500 price target set by smaller firm Dougherty & Co. since October.
Tesla revealed its new low-profile solar panels over the weekend, ahead of accepting customer orders for its revolutionary Solar Roof tile, expected to take place this month. The company is also gearing up for production of its highly anticipated mass market Model 3 sedan in July. Release candidate vehicles have been recently spotted testing on the curvy backroads near the company’s Silicon Valley-based headquarters.
Tesla shares are trading up 3.09% at $311.89 at the time of this writing.
