Tesla Inc. (NASDAQ:TSLA) bull Gary Black on Friday raised his price target on the EV giant's shares from $200 to $270 in addition to revising his estimates for the company's full-year vehicle delivery volume and earnings per share.
What Happened: The Future Fund Managing Partner increased his adjusted EPS (earnings per share) estimate for 2024 to $2.4 from $2.2 while adding that Tesla will likely deliver 1,707,000 vehicles for the whole year, down from the 1,808,581 units delivered in 2023.
Despite the increase, Black's estimates are still behind Wall Street estimates of an adjusted EPS of $2.46 and deliveries of 1,804,000 units for the year.
For 2030, however, Black is more optimistic. The analyst now estimates an adjusted EPS of $15 for Tesla in 2030, up from his previous $14.5 estimate, and much higher than Wall Street estimate of $12.
We have increased our $TSLA PT to $270 from $200. Attached is our updated forecast of $TSLA delivs, margins, and earnings vs WS ests. We've increased our $TSLA 2024 Adj EPS to $2.40 (from $2.20). Our 2024 volume forecast is now 1,707 (-6% vs 2023). We are slightly below WS... pic.twitter.com/xZ8rzeaUGf
— Gary Black (@garyblack00) July 5, 2024
The long-term estimate revision is based on several upsides Black sees for Tesla including an increase in global EV adoption rate by 2030, an increase in take rate for Tesla's full self-driving driver assistance technology, and also a hike in gross profits from the company's energy storage segment.
Black, however, assumed no incremental value for either Tesla's upcoming robotaxi or its humanoid robot Optimus in a move that he acknowledged as "ultra-conservative."
Why It Matters: Black's revision comes at a time when Tesla's stock is on the rise. The company's second-quarter delivery numbers beat estimates, igniting a stock rally and reversing losses so far this year.
Talking about the recent rally, former Ford Motor Co. CEO Mark Fields said in an appearance on CNBC, "I think what's ironic is that Musk has been- Musk wants Tesla to be a robotics and AI company, but their stock turnaround was driven by the autos."
"Deliveries beat expectations and their energy storage business was better than expected," says former Ford CEO @mfields on the recent Tesla stock rally. "Elon Musk wants Tesla to be a robotics and AI company, but their stock turnaround was driven by the autos." $TSLA pic.twitter.com/WQvFauJe3K
— Last Call (@LastCallCNBC) July 5, 2024
Fields is referring to Tesla CEO Elon Musk's attempts to turn Tesla into an AI, robotics, and sustainable energy company in addition to an automaker with an increased push toward diverse fields such as robotics, energy storage, and autonomous driving.
Price Action: Tesla shares closed up 2.1% at $251.52 on Friday. The stock is up 1.25% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。