Tesla stock price soared sharply in the last few days amid stock split news and stronger than expected demand for electric vehicles. Each stockholder will now receive a dividend of four additional shares for each held share.
Some market analysts believe Tesla stock has more upside in the days to come while others believe shares of the largest electric vehicle company are overvalued.
Wedbush has provided a price target of $1900 for Tesla stock and the firm has also set a $2500 bull case scenario. Its analyst Dan Ives claims that the electric vehicle company has been seeing robust demand from Europe and China, which is helping in offsetting lower than expected demand from American markets.
“The key bogey to hit ~500k deliveries globally for the year now appears back on track despite this turbulent COVID backdrop,” Dan Ives said. The analyst is also bullish over the game-changing battery developments.
On the other hand, Bank of America believes Tesla stock is overvalued following a substantial year to date rally. The firm has provided a neutral rating from underperform for Tesla shares as the bank says electric vehicle company has access to low-cost capital.
“It is important to recognize that the higher the upward spiral of TSLA’s stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price. The inverse of this dynamic is also true, and it is this self-fulfilling framework that appears to explain the extreme moves in TSLA stock to the upside and downside,” writes John Murphy.
Morgan Stanley has set a price target of $1360 from the previous price target of $1000. The new price target is indicating a significant downside from the current level of $1900. The shares of Tesla jumped 338% since the beginning of this year, extending the twelve months gains to 734%.