Tesla: BofA raises target price to 900 dollars

(CercleFinance.com) - BofA has raised its target price for the Tesla share after the electric car maker announced "solid" fourth-quarter deliveries and another five-billion dollar equity distribution agreement.


"This corroborates our view that Tesla will utilize its stock to raise low-cost equity capital to fund accelerated growth," the broker wrote in a research note.

BofA said Tesla plans to use its stock to raise capital through low-cost equity offerings in order to accelerate aggressive capacity plans, drive revenue substantially higher, and further cement its status as the dominant EV automaker.

"It is important to recognize that the higher the upward spiral of Tesla's stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price," the broker added.

BofA however maintains a "neutral" rating on the stock.

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