Tesla Gets a Price Forecast Raise from CFRA Analyst to $420 a Share

CFRA analyst Garrett Nelson is feeling bullish about electric vehicle maker Tesla. He upped his price forecast on the stock to $420 a share from $375.

This was the same price that CEO Elon Musk had tweeted about taking the company private at.

The analyst is expecting Tesla to limit the impact of new competition as it introduces lower cost Model 3s.
The lower-priced versions of the Model 3 will undercut rivals and limit any impact on sales according to the analyst.

“We expect unit costs to continue to fall, reflecting improved operating efficiencies and fixed cost absorption,” Nelson said.

“We also view the U.S.-China ‘tariff truce’ as having positive gross margin implications,” he added.
Nelson reiterated a “buy” rating on Tesla shares.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.