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Tesla Marches Higher As RBC Bear Admits He Was 'Completely Wrong', Boosts Price Target To $700

RBC analyst Joseph Spak said he 'got Tesla’s stock completely wrong' in the past, but boosted his price target on the group to $700 Thursday in the latest Wall Street Mea Culpa on the clean-energy carmaker.

Tesla Inc.  (TSLA) - Get Tesla Inc. Report extended gains for a tenth consecutive session Thursday after analysts at RBC Capital admitted they "got it completely wrong" on prior calls for the clean-energy carmaker's stock.

RBC analyst Joseph Spak, a long time bear and one of Wall Street's last holdouts on Tesla despite last year's 750% surge, nearly doubled his price target for the stock to $700 a share Thursday while boosting his near-term forecast for deliveries following last year's record tally of 499,550 units.

Spak said Tesla's share price gains can allow it to 'easily' raise capital for future growth, "whereas traditional OEMs need to generate significant cash from existing operations to fund their transition to electrification.”

Tesla shares were marked 4.9% higher in early trading Thursday to change hands at $793.97 each, another all-time high that would would value the group at just over $750 billion and pegs its six-month gain at 185% 

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Tesla has taken full advantage of the stock moves, announcing four different capital raising efforts so far this year, including a $5 billion share sale unveiled in late December.

Spak at RBC is the latest in a long line of Wall Street analysts that have boosted the group's price target in the wake of its inclusion into the S&P 500 benchmark late last year and its record 2020 delivery tally.

Morgan Stanley analyst Adam Jonas, in fact, pegged his own target at $810 per share only yesterday, the highest on Wall Street, as he dubbed Elon Musk's clean-energy carmaker the industry's "chosen one" thanks to its "people, its technology, business model and access to capital". 

Wall Street's biggest outlier, however, remains unbowed: JPMorgan analyst Ryan Brinkman had cautioned his clients not to increase their holdings in Tesla to approximate its weight in the S&P 500, arguing the group is "in our view and by virtually every conventional metric not only overvalued but dramatically so"