The Wall Street research company Jefferies has a bold new call for the electric-car maker’s shares at a price target of $350.
Jefferies said on Tuesday in a note to its clients that a recent survey conducted with 700 people suggested the Tesla (NASDAQ: TSLA) could sell a minimum of 500,000 cars a year by the year 2020.
Jefferies, following this survey, started research coverage on the stock with a ‘Buy’ rating coupled with a price target of $350 a share.
Only Stifel, having a price target of $400, is forecasting a greater upside for the company’s shares according to Bloomberg data.
On Tuesday in pre-market trade, Tesla shares increased by around 3% to trade at $238 a share.
Jefferies also added in its note that 68% of the people it surveyed were thinking about getting alternate-fuel vehicles; interestingly 7% of the people were considering a Tesla.
Jefferies said that based on these numbers the target by Tesla to deliver 500,000 cars a year by 2020 could be feasible and would only give the car-maker less than 0.5% of the car market share globally. In 2014, Tesla delivered 31,655 vehicles.
Jefferies also said that the poor sales figures from Tesla in China are exaggerated.
The survey that Jefferies conducted also indicates that there is not much excitement from the consumer about an Apple or Google electric car. Added to this, Tesla’s Energy unit also gives it a distinct competitive advantage.
Tesla announced last week its energy unit that will produce batteries to power businesses and homes.
MT4 Chart: Tesla
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