A longtime Tesla Bear throws in the towel after the stock started “underperforming” at January 1, 2019200% has risen

RBC has raised Tesla from “underperform” to “sector performance” and raised its price target from USD 339 to USD 700, according to a statement on Thursday. A move to USD 700 corresponds to a downside potential of 7% compared to the close of trading on Wednesday / p>

“There’s no graceful way of putting this other than saying that we completely misunderstood TSLA’s stocks,” said RBC

The biggest flaw in RBC’s original analysis was Tesla’s ability to leverage its share price to cost-effectively raise capital to fund capacity spending and growth

In the past few months, Tesla has raised $ 10 billion in market share offers, with the latest $ 5 billion increase meaning less than 1% dilution for shareholders

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“This shows how easily Tesla can fund future growth while traditional OEMs need to raise significant funds from existing operations to fund their transition to electrification,” said RBC, adding that the higher share price “is somewhat self-fulfilling for Tesla Growth is potential “

RBC now expects Tesla to sell 1.7 million cars in 2025 with an average annual growth rate of 28% per year due to additional manufacturing capacity coming online and holding a global electric vehicle market share of about 20%

In the future, according to RBC, Tesla can use its high share price to finance acquisitions of a traditional automaker for additional manufacturing capacity, of suppliers or raw materials for further vertical integration or of software or artificial intelligence companies

At the close of trading on Wednesday, Tesla was valued at $ 734 billion, making it the sixth largest company in the S&P 500

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Tesla Share

World News – GB – The longtime Tesla Bear throws in the towel and equips the shares after a rally of 1200% up He reflects on what went wrong

Source: https://www.businessinsider.com/tesla-stock-price-throws-towel-upgrades-shares-after-1200-rally-2021-1