Tesla stock looks unstoppable even at $2,000: strategist

August 21, 2020

2 minutes read

AdvisorShares CEO Noah Hamman.” data-reactid=”16″>A year from now Tesla (TSLA) at $2,000 a share may look like a bargain, suggests AdvisorShares CEO Noah Hamman.

told Yahoo Finance’s The First Trade.

Added Hamman, “It’s shocking [to see Tesla’s stock at $2,000], and it can probably continue to go up. I mean I am surprised by the number. It makes it tough to be a new investor in that stock to think whether or not you will get the returns from a price perspective. But it’s a great company, an amazing company.”

Hamman is among the many on Wall Street shocked by the bullish move in Tesla in recent months.

Tesla’s stock eclipsed the $2,000 a share mark for the first time. The stock is up an insane 392% year-to-date —130% of that appreciation has come in the past six months as Tesla has shown back-to-back quarters of profitability. That has fueled speculation of Tesla being added to the S&P 500 soon and triggering a fresh wave of buying by fund managers.

Market watchers have told Yahoo Finance the latest climb in the stock — which has sent founder Elon Musk to number five on the world’s richest people list with a net worth of $92 billion — is being fueled by optimism ahead of a five-for-one stock split on Aug. 31.

For illustrative purposes a woman woks on a computer in front of Tesla website as Tesla experiences an unexpected increase in sales and profits, despite the automobile industry in general going through major difficulties due to global spread of Coronavirus, London, England July 23, 2020. (Photo Illustration by Dominika Zarzycka/NurPhoto via Getty Images)

WMT) in terms of market, according to Yahoo Finance Premium data.

But Tesla bulls say the fundamentals on the company warrant an even higher valuation and that the stock’s hearty ascent in 2020 isn’t simply a speculative bubble.

Wedbush Securities analyst Dan Ives. “We are seeing more leverage in the story now on the horizon out of Giga 3 along with some price cuts both in the U.S. and China that could further stimulate demand as the macro starts to improve and the lockdown conditions ease globally.”

Ives has a $1,900 price target on Tesla, but has a bull case estimate of $2,500.

@BrianSozzi and on LinkedIn.” data-reactid=”41″>Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.