Tesla Inc. (NASDAQ:TSLA) saw its shares rally in pre-market trading following falls in the previous session after a slightly cautious production update, helped by some positive broker comment.
Analysts at Nomura have started coverage on the electric vehicles group’s shares with a ‘buy’ rating and a chunky price target of US$500.
READ: Tesla says “production bottlenecks” has hit planned ramp-up for new Model 3
In a note to clients, they forecast "an unprecedented run-up in Tesla's revenue" to US$58bn in 2021, up from US$8bn in 2016.
The analysts said Tesla has "an insurmountable lead in vehicle range per dollar," benefits from "what we believe is a largely inferior competitive field," and will overcome Model 3 production constraints.
Nomura's price target, represents 44% upside potential from Tuesday's closing price.
In pre-market trading, the stock was up nearly 1% at US$351.45.
Tesla shares fell around 2% yesterday after the Silicon Valley firm said “production bottlenecks” has it behind in its planned ramp-up for its new Model 3 as it reported that deliveries were up by 4.5% year-on-year in the third quarter.