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In pre-market trade the stock is changing hands at $155.35, up $21.12 from yesterday's close.
On July 27 we linked to "Tesla Shares to $160? Five Reasons It Could Happen" (TSLA) in large part because of this one sentence:
“We have been late in recognizing that the Street would value Tesla on out-year potential and have been overly focused on the risks,” analyst Dan Galves wrote to clients, offering a mea culpa of sorts....I figured that if the guy was that intellectually honest, and was willing to do it in public, there might be something going on.
Here are his pre-release comments yesterday at CNBC:
Tesla’s run just beginning: Analyst
Shares of Tesla could more than double within the next three to four years, Dan Galves of Deutsche Bank said Wednesday.
"We feel like the company has a strong advantage in electric vehicles, and that's likely to be sustained over the long-term, so we see a lot of volume growth over the next few years and profitability being very strong," he said.
Shares of Tesla were up nearly 300 percent year to date.
Tesla was expected to release its second-quarter earnings report after the stock market close.
On CNBC's "Fast Money," Galves said that he was taking a long-term view on the stock, on which he held a $160 price target.
"Our price target is based on earnings and volumes that aren't likely to come until near the end of the decade, once Tesla brings out its next-generation vehicle, which is a lower-priced vehicle," he added. "We base our valuation target on earnings, and three or four years from now we think that this company can do about $14 of EPS on 200,000 units near the end of the decade."
Galves added that sales of 200,000 automobiles would still only represent a small fraction of the potential market....MORE
