Industry

Tesla (TSLA) gets new high target price for its ‘technological superiority’

Tesla’s stock (TSLA) is on the rise this week as KGI Securities is initiating coverage of the electric vehicle company and giving it a high price target for its “technological superiority.”

KGI Securities, a Taiwan-based financial company, has been known for its Apple coverage due to their frequent unique insights based on leaks.

Now the company is initiating coverage on Tesla with an “Outperform” rating and a $855 price target, which represents a significant upside over today’s price.

In a note to clients, KGI Securities analyst Jennifer Liang wrote that she believes that the electric automaker currently has “technological superiority” over the competition and several key advantages:

“Tesla will continue to stay ahead of the pack in the midterm; opportunities thrive for those with unique business models and strong competitiveness. We expect Tesla (TSLA US) to maintain its leading position in the global EV space for at least the next 3-5 years. Tesla demonstrates technological superiority and continued dedication to enhancing its EV offerings on all fronts, including software and hardware, namely: (1) advanced Autopilot and full self-driving (FSD) features; (2) the ability for over-the-air (OTA) updates; (3) in-house design of software and electronic architecture, enabling the firm to introduce innovations faster than rivals; (4) a self-developed new 4680 battery cell architecture and unibody castings; and (5) a wide Supercharger network build-up worldwide.”

However, the firm warns that Tesla’s market dominance will dimish over time as more competition enters the space.

Liang wrote:

“Nevertheless, we do not foresee market dominance for Tesla as traditional OEMs, EV start-ups, and global tech giants will seize the massive market potential and increase their competitiveness, brand awareness, software strength, and unique business models. Nio (NIO US, US$44.68, NR), for example, has a strong presence in China and its success is partially built on its battery-as-a-service (BAAS) approach.”

According to TipRank, there are now 23 Wall Street analysts who have updated their 12-month price targets for Tesla in the last three months.

The average price target is $746.91 with a high forecast of $1,200 and a low forecast of $160. Most analysts are rating Tesla’s stock as the equivalent of a “buy.”


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