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Why Does This Analyst Believe Tesla Will be Worth $80 a Share?
Going over the reasons why Tesla might be running on borrowed time
The growth story for Tesla in the last year has been phenomenal. So phenomenal, in fact, that most analysts have raised their price-point targets on the company. The stock has gained so much ground in the last year that even analyst targets continuously lag behind the supersonic increase in Tesla’s valuation.
Tesla has gone from being valued just under Honda Motors to being valued larger than the next five auto-makers, combined. Toyota, Volkswagen, Mercedes, General Motors, and Honda. Tesla is larger than all of these.
On paper, at least.
Tesla has bedazzled every analyst’s expectation — except one: Gordon Johnson.
Gordon has focused on one thing: Tesla is making a profit on tax credits. Specifically, Gordon referenced that Tesla’s first-quarter 10Q regulatory filing shows the company recognizes revenue on the actual transfer of ownership. He suggested that this translated to a revenue bump for Tesla — one that will run out quickly.
Furthermore, Gordon stated that, when removing the tax credits, Tesla has only shown positive net income in four of the 26 quarters.
