Tesla jumps after Goldman Sachs upgrades automaker’s stock, raises price target by 40%

• Tesla won on the pre-stock market on Tuesday after Goldman Sachs upgraded the electric vehicle maker’s stock to “buy” from “neutral” and raised its price target to $ 780.
• Strategists believe that widespread adoption of electric vehicles is accelerating, that battery prices are falling rapidly, and government regulations will eventually phase out higher-emitting vehicles.
• Tesla’s other clean energy products, including solar panels and rooftops, offer promising opportunities.
• “The energy sector is also expected to benefit from regulatory change towards carbon reduction and clean energy, and solar market assessments have accelerated similarly,” the strategists wrote.
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Tesla shares surged Thursday after Goldman Sachs upgraded its stock to “buy” from “neutral” and raised its price target to $ 780, currently the highest on Wall Street.

Tesla stock rose 3% pre-trade. Shares of the electric vehicle maker are up 592% year-to-date, boosted by its upcoming inclusion in the S&P 500 on December 21 and allaying concerns about its ability to make profits.

Goldman strategists wrote in a Dec. 2 report that “the shift to the adoption of battery-electric vehicles is accelerating and will happen faster than our previous opinion.”

They noted that battery prices were dropping faster than expected, as governments around the world passed regulations that could completely eliminate higher-emission vehicles within 10 to 20 years. This, in turn, improves the sales prospects for electric vehicles.

Other lesser-known product offerings, including solar rooftop installations for homes, according to Goldman, will add to Tesla’s sales and long-term potential.

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“The energy sector is also expected to benefit from regulatory change towards carbon reduction and clean energy, and solar market assessments have also accelerated,” the strategists wrote.

More and more bearish analysts have become bullish on Tesla, believing its first-mover advantage in the EV space allows it to capitalize on a growing user base. Its stock currently has 11 sell ratings, 10 hold ratings, 11 buy ratings and 1 strong analyst buy rating, according to MarketBeat.

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