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Tesla Price Target Raised by Cowen on Strong Q4 Output

Cowen forecast total deliveries of 181,500 Tesla cars for this quarter, up 16% from its prior estimate of 156,500.
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Cowen analyst Jeffrey Osborne raised his price target on Tuesday on hot electric automaker Tesla  (TSLA) - Get Tesla Inc Report from to $380 from $300, while maintaining his market perform rating.

Tesla's shares recently traded at $663.90, up 0.03%, and have skyrocketed 695% year to date amid market mania for electric vehicles. Tesla’s production of EVs exceeds that of any other company.

Tesla probably will enjoy a “strong close” to its fourth-quarter shipments, Osborne said, according to Bloomberg. Data indicate that the company’s deliveries have accelerated in both the U.S. and Europe this month, he said. He forecast total deliveries of 181,500 cars for this quarter, up 16% from his prior estimate of 156,500.

To be sure, quality control remains an issue for next year, especially in light of China’s recall of 30,000 vehicles for a suspension problem, Osborne said.

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Morningstar analyst David Whiston likes Tesla, but thinks it’s hugely overvalued, putting fair value at $306.

“Tesla has a chance to be the dominant electric vehicle firm long term and is a leading autonomous vehicle player as well as a vertically integrated sustainable energy company with energy generation and storage products,” he wrote in a commentary this month. “But we do not see it having mass-market volume this decade. Tesla's product plans for now do not mean an electric vehicle for every consumer who wants one, because the prices are too high.”