Tesla Motors Inc (NASDAQ:TSLA) shares on Tuesday rallied to all-time-high levels after analysts at Stifel Nicolaus Corp. upgraded the stock to “Buy” with a very bullish price target of $400, a report from Yahoo Finance notes.
According to the financial services firm’s James Albertine, Tesla Motors Inc (NASDAQ:TSLA) has a “sizable head start” compared to any possible rival in terms of production.
Albertine proposed that observers see Tesla Motors Inc (NASDAQ:TSLA) in a different light. If the automaker is considered as a “slightly bigger than niche” luxury electric car maker, the manufacturer has virtually no competitors.
In his note about the upgrade, Albertine said that it looks as though Tesla Motors Inc (NASDAQ:TSLA)’s primary competitors are still “reluctant to fully dedicate the resources necessary for developing a suitable Model S/X competitor with 200-300 miles of EV range.”
According to Albertine, noting the Capgemini World Wealth Report 2014, there are around 14 million individuals in the world with a high net worth. These individuals, which are said to have $1 million or more in money outside of real-estate holdings that they can spend, will likely go to Tesla Motors Inc if they are in the market for a luxury electric vehicle.
The analyst also noted that it appears as though luxury competitors are struggling to compete with the car manufacturer in pure electric vehicle terms. He added that it is “conceivable [that Tesla]can continue to ramp production/deliveries globally at well north of a 100k units per year rate, excluding Gigafactory output and Model III introduction.”
Tesla Motors Inc aims to build what it calls its “Gigafactory,” a facility to that will hasten the production of the battery packs needed for its cars while providing cost-effectiveness to the company.
According to Albertine, he recently visited the company’s manufacturing facility and found progress the company made in between his visits is “staggering”. Based on his assessment, the company can achieve its 1,000-units-per-week goal by this year’s end.
Tesla Motors Inc (NASDAQ:TSLA) shareholders includes Daniel Benton’s Andor Capital Management which reported 1.25 million shares in the luxury electric vehicle manufacturer by the end of the second half of the year.