On a huge rental order of 100,000 cars and a new $1,200 target price from Morgan Stanley, Tesla's stock (TSLA) is reaching fresh all-time highs today.
After the automaker reported record financial results for the third quarter of 2021, the stock was already flirting with a new all-time high last week.
However, it topped the all-time high today with a 5% increase at the market open.
Tesla's stock is currently worth up to $960 a share.
Hertz announced this morning that they had purchased 100,000 Tesla vehicles to electrify its fleet, which contributed to the increase this morning.
Unsurprisingly, the stock price increased as a result of the $4.2 billion order.
Tesla's stock, on the other hand, was up as much as 3% premarket on a new Morgan Stanley note.
The firm announced in the note that its price target for Tesla's shares has been raised from $900 to $1,200 per share.
The rise is mostly due to the automaker's expected volume growth in the following years:
Following Tesla's better-than-expected third-quarter earnings, we're increasing our price target to $1,200 (up from $900) and maintaining our OW rating. Higher volume is mostly responsible for the shift in aim. Our earlier prediction of 5.8 million units by 2030 projected a 23 % annual growth rate (from 2021 to 2030), which was lower than the overall EV market growth rate. Our updated volume prediction of 8.1mm by 2030 units represents an annual growth rate of 28%, somewhat higher than 1/2 of the company's long-term growth target of 50%, which they reiterated in the 3Q call.
For a TSLA bull, the firm's volume expectations have always been modest.
Even with this rise, Tesla's expected growth plans of 20 million vehicles per year by 2030 remain well behind:
Tesla is currently experiencing a % year-over-year increase in sales. Why don't we accept the company's 50% growth rate as a starting point? Many reasons will direct the growth of national electric transportation 'utilities' over time, including longer supply chain restrictions, capital limits, and a slew of competitive and geopolitical forces.
Nonetheless, Morgan Stanley believes Tesla's manufacturing strategy, particularly its massive casting machine, will provide them a competitive advantage.
On TipRanks, Adam Jonas, the Morgan Stanley analyst in charge of Tesla coverage, is ranked No. 650 out of 7,706 experts.
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