Tesla Stock (TSLA): $450 Price Target By Goldman Sachs

By Amit Chowdhry ● October 14, 2020
  • Goldman Sachs analyst Mark Delaney increased the price target of Tesla Inc (NASDAQ: TSLA) from $400 to $450. These are the details.

Today the stock price of Tesla Inc (NASDAQ: TSLA) is trading up over 3.3% as of 12:09 PM ET despite a broader market selloff. Why is the stock price going up?

Goldman Sachs analyst Mark Delaney increased the price target of Tesla from $400 to $450. In the report, Delaney has a positive view of the auto industry as a whole. And Delaney is keeping a “Neutral” rating on the company’s shares.

Due to recent industry data, Delaney believes that companies that have higher auto exposure could have strong earnings reports. Delaney also increased the U.S. auto sales forecasts for 2020 to 14.3 million from 13.4 million. And he is expecting 2021 sales to hit 15.5 million, up from a previous forecast of 15 million.

Billionaire investor Ron Baron also told CNBC today that Tesla is expected to become a $2 trillion company. With a current market value of $428 billion — which means that the stock price would have to grow nearly 5 times to hit that number. And the Tesla stock price has seen a 442% growth year-to-date.

In the interview, Baron said he is expecting Tesla to build more factories and hit between $500 million and $800 million in sales in 10 years on just cars.

“The batteries (are) just another unbelievable business which I’m very excited about,” added Baron.

Currently, Tesla is the top holding in the Baron Partners Fund — which represents about 29% of the investment firm’s total investments according to Business Insider. Baron Capital has over $39 billion in assets under management.

Chinese electric vehicle company Nio also saw a price target increase today.

Disclosure: I have a small position of Tesla in my stock portfolio