Summary
- Longtime Tesla skeptic Craig Irwin of Roth MKM upgraded Tesla stock from Neutral to Buy
- Irwin increased the price target on Tesla stock from $85 to $380
- Irwin cited reasons such as Tesla’s potential gains from President-elect Donald Trump and the removal of the $7,500 EV tax credit as positive factors
- Conservative voters’ enthusiasm for Tesla could boost demand trajectory according to Irwin
- Tesla stock is currently trading at $354.46 on the East Coast
Article
Tesla has received a major upgrade from longtime bear Craig Irwin, who has adjusted his narrative and price target on the stock significantly. Upgrading shares of Tesla from Neutral to Buy, Irwin has increased the price target from $85 to $380. Irwin, who has historically been a skeptic of Tesla, had previously stated that the company was overvalued and maintained a Hold rating on shares earlier this year.
The shift in narrative comes as Irwin points to several factors that could benefit Tesla in the near future. One major advantage for Tesla is its potential gain from President-elect Donald Trump’s administration, as CEO Elon Musk has already been given a role in the Department of Government Efficiency. Additionally, the close relationship between Musk and Trump could help expedite regulatory processes for autonomous driving, a key focus for Tesla’s future products such as the Cybercab.
Irwin and other analysts believe that the removal of the $7,500 EV tax credit by Trump could actually be a positive for Tesla. According to Irwin, this move will help Tesla fend off competition from other automakers and will have a more significant impact on legacy companies. Conservative voters, who may have previously been against EVs, could also provide a boost to Tesla following the election, with Irwin noting that enthusiasm for Tesla among conservative voters could lift the demand trajectory for the company.
The credibility of a projected 20 to 30 percent increase in deliveries for 2025 is further supported by a fresh pool of consumers potentially added to Tesla’s customer base, according to Irwin. The shift in attitude towards EVs among conservative voters, possibly influenced by Musk’s relationship with Trump, could have a significant impact on Tesla’s sales in the coming years. As a result of these factors, Irwin is advocating for investors to buy Tesla’s shares, signaling a major change in his perspective on the company.
Tesla’s stock is currently trading at $354.46, reflecting the positive sentiment among analysts following the upgrade from Irwin. The shift from a bearish to a bullish outlook on Tesla highlights the changing dynamics in the automotive industry, especially as new technologies and regulatory considerations come into play. The potential for Tesla to benefit from supportive policies and consumer attitudes bodes well for the company’s future growth and market position, as it continues to lead the way in electric vehicle innovation.
Read the full article here
