Shares of Tesla Inc. (NASDAQ: TSLA) were on the rise Tuesday and a longtime bull got even more bullish, raising his target price on the stock to a Street-high. Tesla's stock is already up more than 20% this month.
New Street's Pierre Ferragu raised his price target on Tesla from $530 to $800, keeping a Buy rating on the stock.
Ferragu now has the highest price target on the Street for Tesla, which has a consensus target price under $360 and more Sell ratings than Buy ratings.
Ferragu said he expects a strong free cash flow beat when Tesla reports fourth-quarter earnings next week and sales of 2 million to 3 million cars per year after 2025, justifying a higher market capitalization and share price. The production capacity outlook is strong, with a new China plant ramping up and plans for European production, he said.
Separately on Tuesday, Tesla responded to last week's announcement by federal regulators that they'd review a petition asking for an investigation of reports of unintended acceleration. Tesla said there has been no unintended acceleration and the petition was pushed by a short seller.
Tesla's stock traded up more than 7.3% on Tuesday to $548 per share at time of publication.
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