Tesla: Wedbush adjusts target price
(CercleFinance.com) - On Thursday Wedbush Securities adjusted its target price for Tesla shares to take into account the reduction in its nominal value, which will take effect at the opening tomorrow, in addition to its strong production in China.
The broker, which maintains its "outperform" rating on the stock, has set a new target price of 360 dollars, a huge way off its 1000 dollar target price to date (333 dollars before the split).
For the record, Tesla plans to carry out a three-for-one stock split tomorrow, through an increase in the number of shares making up its capital.
The electric car manufacturer had already carried out a reduction in its nominal value in August 2020, when its share price was divided by five.
Aside from this stock deal, Wedbush hails the "unprecedented" level of production recently achieved in China for the Model Y, with the country well on its way to reaching the one million vehicle mark this year.
More broadly, the analyst highlights a "green wave" that he believes will carry the market through what he believes is the biggest transformation the sector has seen since the 1950s.
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