Tesla (TSLA) – Get Report shares rose Tuesday even after Bernstein analyst Toni Sacconaghi downgraded the beloved automaker’s rating to lower performance than market functionality due to valuation issues.
He kept his percentage value target at $900. Tesla’s percentages were recently quoted at $1545.73, an increase of 0.4%. Inventory has risen by 269% so far, while the Nasdaq has gone up 17%.
“Let’s be clear: this is a call to evaluation,” Sacconaghi wrote in an observation quoted through Bloomberg, calling it “awesome.”
Tesla’s price/earnings ratio is 233, for Morningstar, and its price/cash ratio is 108.
For a summary of Tesla’s latest report, click here.
Potential dangers to Tesla come with the option that sales of new Tesla models cannnibalize older ones and top festivals in the electric vehicle market, Sacconaghi said.
The 481 percent increase in the following year includes more encouraging news than the most likely, he said.
Sacconaghi under pressure that he’s not looking to make a short-term call to Tesla. It would be a “crazy game,” he says
“Expectations seem achievable/impossible to see, the next Battery Day can be remarkable and there is a strong boost in Tesla and among the expansion stocks in general,” the analyst said.
Last week, Tesla CEO Elon Musk announced the structure of a new plant in Austin, Texas. He described the long-term plant as an “ecological paradise” and said it would be open to the public. Construction of the facility is already underway, he said.
The Texas site is intended to build Model 3 and Model Y cars for the eastern part of the United States.
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Dan is a freelancer whose paintings have been published in the Wall Street Journal, Barron’s, Institutional Investor, The Washington Post and other publications.