Shares of Tesla (NASDAQ:TSLA) jumped in early trading Friday after Credit Suisse’s Dan Levy doubled the name’s price target to $1,400 versus prior $700.
In a note to clients the analyst said that while any material hiccup in the near-term could prompt a correction, the primary driver in his firm’s new target price is an increased volume outlook. In addition to several positive catalysts ahead for the stock, such as Tesla’s 2Q earnings report-set for release on Wednesday, the Battery Day and inclusion in the S&P 500 index, Levy said he sees FY 2025 capacity expansion of 1.8 million units versus prior 1.2 million.
Tesla’s recent rally that sent it as high as $1,794.99 on July 13 has been driven by a number of factors and the stock seems “priced for perfection,” Levy noted, adding the electric carmaker is up against elevated expectations, and the “onus is now on (the company) to execute to these lofty expectations.”
As of writing, Tesla shares are up $3.50, or 0.23%, to $1504.14. Ticker is up 260% year-to-date and 482.78% year-over-year. The $278.86 billion market cap company – the world’s most valuable automaker – trades in a 52-week range of $211 to $1,794.99. The consensus price target for TSLA is $766.47.