Tesla Motors Inc (NASDAQ:TSLA) is always a popular stock to watch, experiencing a significant growth over the past two years, above the expectations of the most optimistic “bulls”. Today, the stock took another jump, gaining over 5%, versus the moderate appreciation of the S&P 500, which picked up 0.32%. As it was mentioned earlier today, the growth is attributed to Deutsche Bank’s upgrade of the stock. Analyst Rod Lache of Deutsche Bank, has increased the rating for Tesla Motors Inc (NASDAQ:TSLA)’s stock to ‘Buy’ from ‘Hold’ and upgraded the price target to $310, from $220.
However, not only the upgrade per say cause Tesla Motors Inc (NASDAQ:TSLA)’s price to advance, but rather the reasons behind it have inspired more optimism among investors. As the Investors.com website pointed out, Deutsche Bank has given Tesla a ‘Buy’ rating on the consideration that Tesla has a big potential and if it plans to increase its production by building more factories, it can reach the 1.0 million cars per year mark by the year 2025.
As the source quoted Mr. Lache as saying in the report, earlier, Deutsche Bank considered that Tesla Motors Inc (NASDAQ:TSLA)’s production growth would allow it to reach 450,000 vehicles by 2020, which would be followed by a 7% annual growth in the next years. The analysts at Deutsche Bank, however, consider that by the time Tesla Motors Inc (NASDAQ:TSLA) kicks off the production of its Model 3 vehicle (which is supposed to be a low-priced, more accessible model), the company will start building some more factories for assembling the cars.
At the moment, Tesla Motors Inc (NASDAQ:TSLA) plans to produce around 35,000 vehicles this year, and plans to get to 100,000 by 2015. The company has already managed to expand to other markets, such as the UK and Hong Kong, where it delivers right-hand drive vehicles, and China, as well as other markets. Mr. Lache pointed out that they expect Tesla’s Femont plant in California to reach around 500,000 units by 2019-2020. Therefore, if the company adds one or two similar facilities, it will easily be able to top the production volume mark set by Deutsche Bank.