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Tesla, Lucid, Fisker Stocks Mixed as Price Targets Raised by BofA

'If a large global footprint can be built with no-cost capital, the growth story will likely continue for the stocks,' BofA said.
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Shares of electric auto heavyweights Tesla  (TSLA) - Get Tesla Inc Report, Lucid  (LCID) - Get Lucid Group, Inc. Report and Fisker  (FSR) - Get Fisker Inc Class A Report were mixed after receiving target-price increases from Bank of America Wednesday.

Tesla has soared 36% over the past month, despite its drop in the last six days. It traded Wednesday at $1,065, up 4% from Tuesday at last check. The Nasdaq Composite has gained 9% in the last month.

Lucid has skyrocketed 85% over the past month but traded at $42.73, down 4.6% at last check. Fisker has leaped 46% in the last month, trading at $19.59, down 1.7% at last check.

Bank of America analysts, led by John Murphy, raised their target for Tesla to $1,200 from $1,000, for Lucid to $60 from $30 and for Fisker to $24 from $18.

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Murphy has a buy rating on Lucid and a neutral rating on Fisker and Tesla.

“It is debatable whether any of the start-up EV automakers will ultimately be dominant over the long run, especially in a very competitive industry where the traditional automakers are also ramping up EV efforts,” Murphy wrote in a commentary.

“However, if a large global footprint can be built with no-cost capital, the growth story will likely continue to carry the day for the stocks.

“In fact, on our revised price objectives, our analysis suggests that a 10% dilutive equity raise for TSLA could fund 40-plus incremental plants and 10 million-plus units of capacity, which would make TSLA effectively the largest global automaker.”

As for Lucid, “a 10% dilutive equity raise could fund three-plus incremental plants and 750,000-plus incremental units of capacity, which would make LCID a relatively large global luxury automaker,” Murphy said.