Tesla Is the ‘Undisputed Leader’ in the EV Market, Analyst Says

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The Tesla Model S is plugged into a Tesla Supercharger.

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Weird Anderson / AFP via Getty Images

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Tesla shares were rebounding on Tuesday after UBS raised its price target on the stock, calling the electric-vehicle company the “undisputed leader” in the market.

Analyst Patrick Hummel raised his price target from $725 to $1,000, saying global demand for electric vehicles will propel the company to exceed expectations in 2022. Hummel maintained a neutral rating on the stock.

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The electric-automaker had a rough Monday, with the stock closing at $1,009.01, slipping dangerously close to its third bear market of the year. Tesla (ticker: TSLA) was an outperformer on Tuesday, with shares rising 3.4% to $1,043.73.

Of the 41 analysts surveyed by FactSet, 17 rated the stock as buy or overweight, 12 rated it as hold, and 12 rated it as sell. The average price target is $851.09.

The analyst said Tesla’s access to chips and batteries through vertical integration sets it apart from its competitors, helping the company cement market leadership with a global EV share of about 20%.

“We have sharply increased projections to reflect this undeniable leadership; however, the current assessment as a whole reflects such a sharp curve,” Hammel wrote in a research note on Tuesday.

Hummel’s research note on Tesla was titled: “Cementing Leadership as the EV Market: New $1,000 Price Target (from $725) – No Rivals to Close to Tesla in 2022.”

Hummel forecasts Tesla’s car sales will increase from 894,000 in 2021 to 1.4 million in 2022, and reach 2.9 million by 2025, more than rivals BMW (BMW.DE) or Mercedes-Benz.,
He expects EVs in general to account for 50% of global car sales by 2030.

A big part of Tesla’s advantage is the scalability of the software, which could drive a huge revenue pool with margins even higher than 2025, Hummel said.

“Software is the next battleground in the global car industry, and no other car maker is close to monetizing fully autonomous driving for everyday use, and the scalability of Tesla’s technology is the biggest software-driven revenue opportunity in the industry.” produces,” he wrote.

Write to Sabrina Escobar at [email protected]

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