Shares of Tesla Inc. they have gathered for an all-time Thursday, fueled by an upgrade, and hope a “blue” Senate will be a “potential game changer” for Silicon Valley electric carmaker and other EV and alternative energy companies.
Tesla TSLA,
the shares traded up to $ 811.61, a high during the day, extending their winning streak to the 10th session, the longest since a 10-day stretch in April.
Analysts at RBC Capital, led by Joseph Spak, raised their Tesla share rating to the holding equivalent of the sale, and set a target price of $ 700, compared to a precedent of $ 339.
See also: Tesla and other electric vehicle manufacturers report record sales, sending stocks to new highs
“There is no graceful way to put this other than to say that we have completely wronged the actions (Tesla) (even if our fundamental point of view so far has not been too far),” they said in a note Thursday. “But in the spirit of New Year’s resolutions and in light of our recent EV forecast until the 2050 report, we are re-evaluating (Tesla’s) place in the industry, the opportunity for growth and cheap access to capital.”
Of the 37 analysts surveyed by FactSet, 12 rate Tesla on a buyout, 14 rate it on a holding and 11 rate it on a sale, with an average target price of $ 455.71, which means a disadvantage of over 40% .
“Our biggest longing has been how (Tesla) can take advantage of its share price to raise capital cheaply and finance spending and increase capacity,” RBC analysts said. Traditional carmakers “need to generate significant cash from existing operations to finance their transition to electrification,” and Tesla can also use its share price to finance acquisitions, they said.
“Even a relatively large transaction would be insignificant for the market capitalization (Tesla) … To summarize, the higher stock price is somewhat self-fulfilling for the growth potential (Tesla),” analysts said.
The rise in Tesla shares came amid sharp gains on shares of other EV-associated companies and alternative energy stocks in recent sessions, while investors bet that a Democratic-controlled Senate will prioritize clean energy policies.
Related: GM sales fell for this year, but returned to pre-pandemic levels in Q4
ICLN Global Energy Clean iShares ETF has gained almost 20% this week and 190% in the last 12 months. US receipts of depositary Nio Inc. NIO, a Chinese electric vehicle manufacturer, has grown by almost 11% a week and by more than 1,500% in the last 12 months. In comparison, the S&P 500 SPX index,
gained 1.3% this week and about 18% in the last 12 months.
“A Blue Senate is very optimistic and a potential ‘game changer’ for Tesla and the EV sector as a whole, with a greener agenda, now certainly in the books for the next few years,” Wedbush analyst Dan Ives said on Thursday. -a note .
“We believe that a doubling of EV tax credits and other incentives for consumers and government initiatives in the EV sector will be on the horizon, which is a major positive thing” for Tesla and General Motors Co. GM,
private Rivian, Fisker Inc. FSR,
and other EV-related companies, he said.
Tesla was added to the S&P 500 index on December 21st. The stock fell in that session and the next, but has been on an upward trajectory ever since. The stock has gained over 750% in the last 12 months, compared to gains of about 18% for S&P.