Tesla Stock leaps on Morgan Stanley Price Boost, Hertz Order


You’re here (TSLA) – Get the Tesla Inc report shares surged again on Monday, taking the clean-energy automaker to a new all-time high, after Morgan Stanley analysts raised their price target on the group after record third-quarter earnings and shipments.

Action was also boosted by the announcement that Hertz Global (HTZ) – Get the report from Hertz Global Holdings, Inc. had ordered 100,000 Tesla cars – which are expected to be delivered by the end of next year – as it increases the size of its electrified rental fleet.

Morgan Stanley analyst Adam Jonas raised his Tesla price target from $ 300 to $ 1,200 per share while reiterating an “overweight” rating, citing higher vehicle sales volumes in the markets. years to come, as the group demonstrates as “manufacturing leadership” in the electric vehicle industry.

“The Tesla you see today is the product of a pre-COVID, less than $ 100 billion Tesla,” Jonas wrote. “The Tesla that you’ll likely see over the next 12-18 months would demonstrate the capabilities of the trillion dollar Tesla, with a focus on incremental changes in manufacturing, cutting costs… expanding capacity, range of models and service offerings. “

Tesla shares rose 4.9% in pre-market trading Monday to change hands at $ 954.20 each, a move that would set the group’s value at around $ 940 billion – just ahead of the valuation of 905. billion dollars for Facebook (FB) – Get the Class A report from Facebook, Inc..

Tesla posted a net profit of just over $ 2 billion for the three months ending in September, alongside the highest profit margins in the group’s history – 30.5% – and record sales of $ 13.7 billion. The eruption figures follow another all-time high in third-quarter deliveries, which rose 73.2% from a year ago to 241,300 units.

Non-GAAP earnings were pegged at $ 1.86 per share, up 135% from the same period last year and well ahead of Street’s consensus forecast of $ 1.59 per share .

Tesla noted in its earnings release that “a variety of challenges, including semiconductor shortages, port congestion and power outages, have impacted our ability to run factories at. full speed, “adding that” we are pushing the boundaries of new products and manufacturing technologies at these factories, making it difficult to predict the exact pace of the production “ramp” in the soon-to-be-opened factories in Texas and Berlin .

Earlier this month, Tesla also unveiled plans to move its headquarters from California, home for nearly two decades, to Texas, the site of its developing gigafactory and the home of SpaceX.

The move, announced at the company’s annual meeting in San Francisco, follows both Musk’s personal move to the Lone Star State and a series of disputes between the auto billionaire and California officials over issues such as COVID-19 security, taxes and precautions.

Musk also pledged to keep the group’s plant in Freemont, Calif., Adding that he hoped to increase production there by 50% over the next few years.

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