0
0
AUSTIN, 10 July 2023: Tesla Inc stock has been on a tear in 2023, and one analyst believes it could still have more room to run.
Bank of America analyst John Murphy has raised his price target for Tesla stock from USD 225 to USD 300. He believes that Tesla’s production is picking up more momentum than anticipated, and that the company is well-positioned to achieve its target of growing sales about 50% year over year this year.
Murphy cites Tesla’s strong second-quarter deliveries as evidence of the company’s improving production. In the quarter, the company delivered 466,140 vehicles, up 83% year over year. Murphy also notes that Tesla’s production has improved sequentially, with the company producing nearly 480,000 vehicles in Q2, up 9% from the first quarter of 2023.
The analyst believes that Tesla’s improving production is being driven by a number of factors, including the easing of COVID-19 restrictions in China and the ramp-up of production at the company’s new factories in Austin, Texas, and Berlin, Germany.
Murphy also believes that Tesla’s demand is holding up well, despite the rising cost of living and interest rates. He notes that Tesla has been able to maintain its order backlog, which now stands at over 1.2 million vehicles.
Overall, Murphy believes that Tesla is well-positioned to continue its strong growth trajectory in the coming quarters. He sees the stock as a “buy” and has a price target of USD 300.
Key Risks
While Murphy is bullish on Tesla, he does acknowledge some risks to the stock. One risk is that demand for Tesla vehicles could slow down if the economy takes a turn for the worse. Another risk is that Tesla could face increased competition from other electric vehicle manufacturers.
However, Murphy believes that Tesla’s brand strength and its leading position in the electric vehicle market will help the company overcome these risks. He also believes that Tesla’s long-term growth potential is still very high.
Bottom Line
Overall, Murphy’s bullish price target for Tesla stock suggests that he believes the company’s demand and deliveries will continue growing nicely throughout the year. While there are some risks to the stock, Murphy believes that Tesla is well-positioned to continue its strong growth trajectory in the coming quarters.
