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Tesla (TSLA) Stock Approaching All-Time Highs: Too Late To Buy?


Tesla (NASDAQ:TSLA) investors have already made a lot of money, but with a market capitalization above $60 billion at recent prices, they also seem to have banked heavily that the company will accomplish much bigger ambitions, based on the current valuation. As the electric giant’s stock approaches all-time highs, Oppenheimer analyst Colin Rusch poses a handful of questions that should be on investors’ minds right now.

In a research note issued today, Rusch highlighted a handful of key areas of interest. The following bullets contain some highlights from the note:

  • Model 3 Production Run-Rate Targets – We believe Tesla, as a manufacturer, must show meaningful progress toward margin targets to justify increased capital investments.
  • Competitive Landscape for EVs – We expect 2019 to witness the first true test of TSLA’s EV market position.
  • Capital Needs – We believe both bulls and bears expect TSLA to raise money for growth capital and to reconcile the $2.3B delta between current assets and liabilities. We believe its solar assets could be refinanced to generate $500M- $800M+ in cash and expanded working capital lines could offset cash needs.
  • Strategic Partnership Evolution – We believe TSLA is actively managing these relationships to support medium/long-term growth.

Overall, the analyst believes that sustainable disruption in the transportation market both from the fuel and autonomy perspectives is what is at stake for Tesla shares.

Rusch remains sidelined on Tesla shares with a Market Perform rating. (To watch Rusch’s track record, click here)

Musk’s empire certainly has the Street divided, as TipRanks analytics indicate TSLA as a Hold. Based on 24 analysts polled in the last 3 months, 7 rate a Buy on Tesla stock, 10 issue a Hold, while 7 recommend a Sell on the stock. The 12-month average price target stands at $302.67, marking a nearly 18% downside from where the stock is currently trading.

Tesla shares closed yesterday at $370.83, up $12.66 or +3.53%.