Tesla stock at $1,580 or $67: Tesla caught between bulls and bears

?? Tesla stock with strong run in 2021
?? Wide range of analysts evaluating the share certificate
?? High valuation faces great potential

The electric car maker Tesla has brought a successful year 2021 to an end. The Tesla paper went up almost 50 percent to $ 1,056.78 in the old year. In terms of market capitalization, the electric pioneer is worth over a trillion US dollars – more than any other carmaker in the world.

In the new year, the electric car manufacturer was already able to convince with positive news: As Tesla announced at the beginning of January, another delivery record was set in the fourth quarter of 2021 and the company was also able to set a new record with total deliveries last year – an increase of 87 percent compared to 2020 was recorded here. Tesla was also quite successful in December 2021 in the important EV country China . The China Passenger Car Association (CPCA) reported that 70,847 Stromers made in China were sold that month – there had never been more vehicles.

Analyst estimates far apart

The expectations of hardly any other vehicle manufacturer are as far apart as the company of visionary Elon Musk. This becomes clear when you look at the FactSet estimates of the Tesla share certificate. There, the highest target price is $1,580, well above the current price of $1,049.61 (as of the closing price on January 14, 2022). The lowest target, on the other hand, is $67, which would equate to a massive drop in Tesla stock. But who is right and can a statement be made about it at all?

Jefferies sees great potential

Jefferies analyst Philippe Houchois is a true Tesla Bulle and rates the electric car maker with a target price of $1,400. His bullish view is based on expectations that Tesla will do big things in the auto market as well as other markets, Barron’s writes. Although the Musk group still has to work on itself in terms of quality in order to be able to keep up with traditional car manufacturers, he sees this as an achievable goal. In addition, Tesla is far ahead in terms of software, batteries and autonomous driving.

GLJ Research does not believe hype is justified

Gordon Johnson, on the other hand, sees things very differently by GLJ Research, which caused a lot of conversation thanks to its $67 price target. He is particularly bothered by the billion dollar valuation of the Tesla share certificate, which in his opinion already prices Tesla’s success in other industries – although this is by no means a certainty: “You could McDonald ??s and say they’re going to start selling Nikes and chairs and pianos and factor in those valuations. Selling cars isn’t the same as selling iPhones or shirts,” Johnson said opposite Barron’s. In the meantime, Tesla’s enormous increase in production would be priced into the price of the Tesla share, which no car manufacturer could achieve at all.

E-mobility is becoming more popular

In general, the EV market is on the up in the US and beyond. Barron’s reports that EV sales in the US accounted for four percent of the total market last year, up from just two percent last year. An increase can also be observed in Europe and China. The proportion of e-mobility is also likely to increase as more and more different electric car manufacturers are entering the market and offering consumers an ever-increasing number of different models. Only time will tell whether Tesla will be able to remain at the forefront in the future.

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