According to Live Squawk on Twitter and other reports, Jefferies has increased their price target on TSLA from $1,200 per share to $2,500 per share with an upside scenario of $3,000. TSLA stock jumped by about 1% in after-hours trading following the news.
Jefferies analyst Philippe Houchois has now nearly tripled his price target over the last two months. In mid-June, Houchois increased his TSLA price target from $650 to $1,200 citing Tesla’s accelerating momentum and potential to continue to pull away from competition.
Houchois had the opportunity to ask Tesla’s management team a question on the company’s second quarter earnings call and the analyst focused on Tesla’s battery production plans in Europe.
“Will there be battery capacity consistent with the amount of assembly volume you expect to come out of [Giga Berlin]? And if not, would you be able to source your battery requirements out of Europe? Or would you have to import batteries from outside Europe to ensure production in Berlin?” Houchois asked. Currently, Tesla’s batteries are sourced from their US Gigafactory or suppliers in Asia.
Tesla CEO Elon Musk replied by saying, “We can’t say too much about this, except that there will be local cell production and that will serve the needs of the Berlin factory.” Musk and SVP Drew Baglino continued on to emphasize Tesla’s human capital needs in the area, with Musk noting that talent acquisition in Berlin is particularly tricky due to European regulations on workers changing companies.
For more analysis on Tesla including Tesla’s one-piece casting on Model Y, see the included video and follow Tesla Daily on TheStreet.
Disclosure: Rob Maurer is long TSLA stock and derivatives.