Tesla Motors Inc (NASDAQ:TSLA) shares are hovering just under $150 a share after a nice December rally, but many analysts see potential for them to go higher in the not-too-distant future. Wedbush analysts see a future price of $205 a share, which would exceed the automaker’s all-time high of less than $200 a share. But will it happen, and if so, when?
Tesla remains a top pick in clean tech
Analysts Craig Irwin, Al Kaschalk and David Rose of Wedbush Securities have named Tesla Motors Inc (NASDAQ:TSLA) as their top pick within the clean technology industry for 2014. They said the industry as a whole is probably going to see an “improving business environment” in the coming year after a difficult couple of years this year and last year.
The analysts believe investors will begin rewarding companies which are “focused on delivering economic value to customers.”
Tesla the only “viable” EV maker
The Wedbush team also said they see Tesla Motors Inc (NASDAQ:TSLA) as “the only viable investment” in the electric vehicle space. They said although they think the majority of investors remain sober in terms of their expectations for the EV and hybrid vehicle markets, excitement about Tesla is still causing volatility in the automaker’s share.
They believe the company “has a credible roadmap” on the way to offer an affordable mass market EV “at a reasonable price point.” Because of the recent correction in Tesla’s share price, they see the current valuation as “an attractive entry point” for investors who are interested in the company.
Other reasons to like Tesla
The analysts also said they like Tesla Motors Inc (NASDAQ:TSLA) because it will begin selling vehicles in China during the first three months of 2014. In addition, the automaker will be releasing more details about the Model X crossover vehicle, which Tesla’s designer said is basically complete other than some fine-tuning on its aerodynamics. Further out, they say another catalyst could be the release of more details on the planned mass market EV, which could be shown off in 2015 at the Detroit Auto Show.