Tesla bulls rebound behind automaker (TSLA) stock ahead of earnings with new record price targets from two analyst firms.
The company will release its first quarter 2022 results after the market close later today.
Since the release of first-quarter 2022 delivery results, several Wall Street analysts have updated their price target for Tesla to align with the new record deliveries — both an all-time record and a strong record for the first quarter of the year.
Two companies are taking this to new levels with new record price targets.
Texas-based hedge fund Worm Capital believes Tesla is about six years ahead of the competition (via Seeking Alpha):
Traditional Wall Street analysis underestimates Tesla’s multiple businesses, massive size, growing margin profile, leading revolution in complex manufacturing, approach to real-world AI, vertical integration, software stack, and more. Our multi-year research efforts on Tesla’s manufacturing capabilities and supply chain integrations indicate that Tesla is more than 6 years ahead of any competitor. This lead is being expanded.
The company believes Tesla stock could rise by a factor of 10 this decade:
We believe Tesla (TSLA) stock could offer a 10x return by 2030 — and possibly much more.
Worm Capital’s expectations are even higher than those of longtime Tesla superbull ARK Invest.
This week, the company updated its price target for Tesla to $4,600 by 2026. The most aggressive target of any large corporation.
However, they claim it’s conservative:
While aligned with our expectations for 2026, we believe our Tesla model is methodologically conservative: We expect Tesla stock to trade like a mature company, rather than a high-growth company, in 2026. Using the existing assumptions in our model and extending them to 2027 results in a significantly higher price target and average annualized return.
Ark also has a price target of $5,800.
While they claim the goal is conservative, it relies on Tesla meeting some long-standing goals that have been delayed, like “fully self-driving” and the cybertruck.
At $5,000 per share, it would value Tesla at over $5 trillion.
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