Tesla (TSLA) receives higher price targets from multiple firms after successful Q1

Tesla (NASDAQ: TSLA) has received a higher price target from several investment firms on the heels of a successful first quarter earnings report. The most update came from Frankfurt, Germany-based Deutsche Bank, which raised its price target for the electric automaker from $510 to $850 per share while maintaining a “Hold” rating for TSLA stock.

Last week, Tesla held its Q1 2020 earnings call following the release of its Update Letter. The electric car and energy company managed to beat Wall Street’s estimates, making Q1 a surprisingly successful first quarter for the year.

Many investors were expecting Tesla to post lower-than-expected numbers because of several forced closures of its vehicle and solar production plants. The most notable shutdown took place on March 23, when the company’s Fremont facility in California was closed due to the coronavirus pandemic. The Fremont plant is Tesla’s main automotive production facility, manufacturing the Model S, Model 3, Model X, and Model Y.

Along with Deutsche Bank, Tesla received higher price targets from Piper Sandler ($819 to $939), Roth Capital ($250 to $350), and Credit Suisse ($580 to $700). Also, the Center for Financial Research and Analysis, or CFRA, upgraded its rating from “Sell” to “Hold,” The Lincolnian reported.

Tesla shares have peaked as high as $917.42 this year, the stock’s highest price ever. After the coronavirus pandemic began, Tesla’s shares took a hit and fell to $361.22 in mid-March. However, the stock price has rebounded nicely, partly due to initiatives such as the company’s “contactless delivery” methods.

Tesla has also ramped its production at Giga Shanghai in China to around 4,000 vehicles per week. The company stated that Shanghai has reached a run-rate of 200,000 vehicles per year in its Update Letter. Tesla has started to offer new variants of its Model 3 sedan to Chinese citizens, adding to its Standard Range Plus option that has been available since the plant’s initial production runs.

Interestingly enough, CEO Elon Musk stated last week that he felt the company’s stock was priced too high. The comments led to a drop in stock during the trading hours on Friday, May 1, but the price decrease was short-lived as the automaker rebounded during Monday’s session.

Recent reports indicate that Tesla could reopen its Fremont facility as early as Friday, May 8. California Governor Gavin Newsom has announced that the state will “gradually move into Stage 2” this Friday, where sectors with low risk of viral transmissions can begin to reopen with modifications. These businesses include “some retail and manufacturing/logistics,” according to the Governor.

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