Wall Street Analyst: Tesla “One of the Most Dynamic Technology Innovators over the Last 30 Years”

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Originally published on EVANNEX.

Tesla is a polarizing stock on Wall Street. There are plenty of bulls and bears that work hard to make their case. However, there’s a new Wall Street analyst covering Tesla [NASDAQ: TSLA] who’s enthusiastic about the company’s potential but warns of great volatility ahead. According to CNBC, “Wedbush Securities began coverage of Tesla shares on [December 14] with an outperform rating.”

The road ahead for Tesla will have twists and turns. Photo: Screenshot of Tesla video.

“Tesla has evolved into one of the most dynamic technology innovators over the last 30 years and, in our opinion, has put itself into an esteemed category of companies such as Apple and Amazon that have revolutionized consumer buying habits and behaviors over the last decade,” Wedbush analyst Daniel Ives said in a note to investors.

According to Ives, Tesla is “a technology titan over the coming years despite the near-term turbulence. … Seeing the forest through the trees, we believe Tesla has the most innovative product roadmap in the technology space over the next 5 to 10years.”

Wedbush Securities Analyst, Daniel Ives, sees this as a “pivotal inflection point” for Tesla (Youtube: CNBC Television)

As reported in Business Insider, Ives notes, “While there will be speed bumps along the way, we believe getting worldwide production annually to between 750k and 1 mm units by 2020 is an achievable target that will further bolster the Tesla growth thesis for the coming years.” He adds, “Over the next 5 to 10 years, a more efficient production ramp and process will enable Tesla to see a discernible jump in profitability and margins.”

Ives emphasizes that, “this will be a bumpy road… [but] we believe Tesla has a golden opportunity to ramp Model 3 unit sales in 2019 and beyond and thus translate into massive FCF and profitability as we look out into 2022-2030 based on [Wedbush Securities] detailed auto unit analysis.”

Tesla’s Model 3, Model S, Model X, and Model S, with more behind. Photo by Zach Shahan for CleanTechnica

Smarter Analyst reports on the analysis specifics provided by Wedbush Securities. And it turns out, Ives views “Tesla as a disruptive technology vendor along the likes of Apple, Google, and Amazon and believe[s] a triangulated, longer-term valuation approach for Tesla is more accurate to capture the intrinsic value in this innovative technology roadmap. To this point, looking out a more normalized model with $22 of earnings power by 2025 and our FCF projections of $5 billion by 2025 we believe a valuation of $440 per share is fair for Tesla.”

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Matt Pressman

Matt is all about Tesla. He’s a TSLA investor, and he loves driving the family's Model 3, Model S, and Model X company cars. As co-founder of EVANNEX, a family business specializing in aftermarket Tesla accessories, he’s served as a contributor/editor of Electric Vehicle University (EVU) and the Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla and you can follow his work on the EVANNEX blog.

Matt Pressman has 332 posts and counting. See all posts by Matt Pressman