Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Can Tesla Motors Inc (TSLA) Hit $400? Jamie Albertine Thinks So

Jamie Albertine of Stifel Nicolaus is firm that Tesla Motors Inc (NASDAQ:TSLA) will hit $400, he revealed in a discussion on CNBC.

According to the automotive industry analyst, his firm’s latest upgrade to its outlook on the electric car maker’s stock was because it saw production improving at Tesla. Stifel upgraded Tesla Motors Inc (NASDAQ:TSLA) from a “Hold” to a “Buy” rating with a price target of $400 at the start of September. The stock closed at $227.82 per share on Friday after a 2.5% single-day rally.

Tesla, is TSLA a good stock to buy, Jamie Albertine, price target,

Albertine said that what drives what some may describe as a ludicrous multiple for the car maker is the demand its cars are getting. For those who are worried about the prospects of electric vehicles now that gas prices are diving, Albertine said that this may be missing the forest for the trees.

“The argument here is how disruptive and in how many different ways can Tesla be disruptive to the automotive industry first before we even get to energy storage down the road and the utility industry. I think, first and foremost, for autos [and] its manufacturing and production, they’re going to be three or four or maybe even five years ahead of their peers,” Albertine said.

He added that when Tesla Motors Inc (NASDAQ:TSLA)’s peers come out with their electric vehicles in the 2017 or 2018, these vehicles will have the range of the electric cars Tesla now has.

Albertine, who is admittedly “very bullish” on the company, also said that he doesn’t think any of the issues people throw at Tesla Motors Inc (NASDAQ:TSLA) has any legs or any potential for long-term traction. He said in the next three quarters, observers will have a better picture of the company’s production and consequently, an idea of its demand.

Furthermore, he said that even though $400 per share may not be reached next year, he still thinks that the company is a good investment as it will likely make money in 2015. Albertine also said that Stifel Nicolaus’ calculation actually still doesn’t factor in Tesla’s entry in China that much as there are still issues such as the lack of government incentive for buyers in the country that should be resolved before electric vehicles take off in that marketplace.

He expects areas of growth will be North America, Europe, Australia and Japan.

Daniel Benton’s Andor Capital Management owned 1.25 million Tesla Motors Inc (NASDAQ:TSLA) shares by the end of the September quarter.

Loading...