Because Tesla shares are soaring again


What happened

Actions of Tesla (NASDAQ: TSLA) are up again sharply, after an 8% increase on Tuesday. Shares in the electric car maker rose following Morgan Stanley analyst Adam Jonas’ decision to raise his price target on the stock by $ 180.

At 11:36 am EST, the growth stock increased 5.2%.

Interior model 3

Model 3. Image source: Tesla.


Jonas now has a 12-month price target of $ 540 for Tesla stock, compared to a previous $ 360 target. The analyst’s biggest upward trend on the stock comes when he adds revenue from software and vehicle-related services to the stock. his predictions for the company. The present value of future earnings from software and related vehicle services is only $ 160 per share, Jonas says.

The analyst changed his assessment of the stock from equal weight to overweight, the equivalent of a buy rating.

Equities could also benefit from further market optimism today following yesterday’s news that the stock will soon be included in the market. S&P 500 Index.

Now what

Tesla is certainly optimistic about the sales potential of its software. The automaker believes it will eventually be able to release an over-the-air software update to its vehicles that will make them fully autonomous. In fact, Tesla has already released a self-driving beta for some of its vehicles. This beta software, however, required drivers to be ready to take control of the steering wheel in no time.

Tesla plans to raise the price of its “self-driving” autopilot option as it improves and more features are released. There is even speculation that the company is considering transitioning to a subscription model for the software.

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