Tesla Gains as Analysts See More Upside Ahead of Earnings

Tesla shares are on the rise as analysts continue to roll out expectations for even better days ahead for the electric car maker.
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Tesla  (TSLA) - Get Report shares were on the rise Monday as analysts continued to roll out their expectations for even better days ahead for the electric car maker ahead of its fourth-quarter earnings.

In a note to clients, Baird analyst Ben Kallo on Monday lifted his price target for Tesla to $728 a share from $488, saying "bias for the stock remains to the upside."

"After breaking ground on factories in Berlin and Austin, launching Shanghai operations in earnest, and keeping promises of selling [around] 500k cars in 2020 from years past, Tesla is entering the next stage of its evolution," Kallo said. He has an outperform rating on the stock.

Wedbush Securities’ analyst Dan Ives, meanwhile, sees a “goldilocks” environment for tech stocks with the Biden administration, including Tesla, which Ives and other analysts see as benefitting from Biden’s promise to pivot toward clean and renewable energy sources.

Tesla is expected to report earnings of about $1 billion, or $1.04 a share, on sales of $10.5 billion after the market closes on Wednesday, based on a FactSet survey of 22 analysts. That compares to earnings of $143 million, or 43 cents a share, and sales of $7.4 billion in the year-ago quarter.

Expectations that Tesla will continue to benefit from tailwinds related to demand for EVs as well as support for shifting consumers away from combustable engines earlier this month prompted Ives to raise his most-optimistic price-target scenario for Tesla to $1,250 and also lift his one-year price target to $950 from $751.

That optimism may also have been behind House Speaker Nancy Pelosi's move to place up to $1 million worth of bullish bets on Tesla stock.

Pelosi bought 25 call options on Tesla stock with a strike price of $500 and an expiration date of March 18, 2022, according to a financial disclosure form filed last week. She -or more likely her husband, Paul Pelosi, who runs an investment firm - spent between $500,001 and $1 million on the purchases on December 22, 2020.

Shares of Tesla were up 2.18% at $865.07 in trading on Monday. The stock has risen more than 100% since the company last reported earnings on Oct. 21.