Nothing seems to slow Tesla (TSLA) for long.
After posting its best quarterly profit to take, and with hopes of selling a half million cars this year, the stock is up again. With plenty of momentum here, we wouldn’t be shocked to see the EV stock well above $1,000 a share again.
Former TSLA bears at Baird just admitted they were “too early” in downgrading the stock earlier this year, as noted by MarketWatch. Nowadays, ““Clearly incorrect, we are now upgrading share as we think TSLA has the substantial access and ability to deploy capital, and has multiple ways to drive substantial revenue growth.”
“Tesla’s competitive moat over peers is substantial (and growing, enabled buy rapid capital deployment) and we think it is unlikely traditional OEMs [original equipment manufacturers] will be able to effectively compete over time,” added Baird analysts.
The firm also says Tesla is a “must own” stock for investors.
Helping quite a bit, demand for electric vehicles won’t slow down any time soon.
According to the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales. By 2030, EVs could surpass combustion engine vehicles with a market share of 51%.
Even better, General Motors just announced that it’s investing $2.2 billion in U.S. manufacturing to increase EV production.
With plenty of catalysts and strong earnings growth, TSLA is a “must own” here.