Tesla Jumps After Analyst Says It Holds Several-Year Lead in EV

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Tesla Jumps After Analyst Says It Holds Several-Year Lead in EV
Credit: © Reuters.

By Dhirendra Tripathi

Investing.com – Tesla (NASDAQ: TSLA ) shares jumped almost 4% Monday after Canaccord Genuity analyst Jed Dorsheimer said the electric vehicle maker holds a lead of several years, setting a price target of $1,071.

The new price target is 50% higher than its current price.

Even as competition mounts from the likes of Germany’s Volkswagen (OTC: VWAPY ) Japan’s Honda (NYSE: HMC ) and China’s Geely (OTC: GELYY ), Dorsheimer said that the Elon Musk company holds a “several-year lead” in the sector while it continues to expand aggressively into storage.

As far as supply challenges are concerned, the analyst expects the situation to ease next year as factories at Giga Nevada, Texas, and Berlin come onstream.

“We believe, large capital investments to increase battery production capacity will begin to pay off in 2022, as Giga Texas and Berlin 4680 cell production starts. Cell suppliers Panasonic (OTC: PCRFY ) and LG are also working with Tesla to produce the 4680 cell, Panasonic specifically plans to start production late 2021 at the partner facility Giga Nevada,” the analyst added.

Tesla shares are prone to sharp movements, partly owing to tweets of its maverick founder, and are a favorite of Cathie Wood’s Ark Invest. Recently she set a price target for the stock at $3,000 by 2025.

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