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Tesla stock price forecast: Wolfe Research sees a 30% upside

By:
on Sep 6, 2022
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  • Wolfe Research analyst says Tesla stock has upside to $360 a share.
  • Rod Lache anchors his bullish view in the Inflation Reduction Act.
  • Shares of the leading U.S. EV manufacturer are down 30% YTD.

Tesla Inc (NASDAQ: TSLA) has bounced roughly 30% off its low in May but a Wolfe Research analyst says that rally is far from over yet.

Tesla stock has upside to $360 a share

Rod Lache now recommends that you buy Tesla stock as it has upside to $360 a share – another 30% upside from here.

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His bullish view primarily stems from the recently passed “Inflation Reduction Act” that he’s convinced will be a blessing for the EV stocks. The analyst wrote:

Inflation Reduction Act has the potential to affect the entire value chain – significantly changing the trajectory of EV adoption, as well as the competitive landscape and earnings prospects for OEMs and Suppliers.

Lache now forecasts electric vehicles to have penetrated 20% of the U.S over the next three years. His previous estimate was a 10% penetration only by 2025.  

Tesla Inc is still down more than 30% for the year.

Lache raises EPS estimates for Tesla Inc

The legislation President Biden signed last month offers a $7,500 tax credit on all new U.S. built electric vehicles through 2032. Lache added:

We believe this development is far from fully appreciated. By 2025, the U.S. government may be directing incentives worth close to $11 billion to TSLA and their customers. We expect this to almost certainly influence OEM profitability.

Tesla Inc, he now forecasts, will boost its earnings to $16 a share by 2025 versus his earlier estimate for $12.70.

Last month, CEO Elon Musk at the Annual Shareholders Meeting said yearly sales will hit 100 million over the next ten years. Wall Street at large also has a consensus “overweight” rating on the Tesla stock.

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