Tesla’s Breakneck Rally Opens Biggest-Ever Chasm With Analysts
Tesla’s Breakneck Rally Opens Biggest-Ever Chasm With Analysts
(Bloomberg) -- The breathless rally in Tesla Inc. has now created the stock’s biggest-ever spread over Wall Street analysts’ average price target for the shares.
The electric vehicle maker’s shares ran up as much as 2.4% to $1,243.49 on Thursday, taking its year-to-date gains to nearly 76%, amid a seemingly insatiable investor appetite for the stock. While several analysts have recently raised their targets on Tesla, that pace has proved to be no match for the momentum in the shares. Analysts’ average target is $764, according to Bloomberg data.
While Tesla shares have been on an upward trajectory since May when they hit a low, a string of positive news in October has really breathed fire into them. The stock jumped more than 40% last month after third-quarter results and deliveries impressed, though the biggest boost came after rental-car company Hertz Global Holdings Inc. on Oct. 25 said it placed an order for 100,000 Teslas in the first step of a plan to electrify its fleet.
“The Hertz deal completely caught Wall Street by surprise, as it suddenly raised the total addressable market for the company,” Robert Schein, chief investment officer at Blanke Schein Wealth Management, said in a phone interview on Nov. 3. The firm holds Tesla stock, but Schein didn’t provide any other details.
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