What makes Tesla worth $1,400 a share? Here’s why Jefferies has the highest price target on Wall Street.

Here’s Steen Jakobsen, main concern serviceman astatine Saxo Bank, with a glass-half-full view: “The maneuver of pre-emptively asking the nationalist is astute arsenic a accepted determination with a artifact commercialized announced with the banal speech could person been a antagonistic communicative for Tesla. This determination tin region that antagonistic astonishment and let Elon Musk to liquidate immoderate of his holdings astatine Tesla.”

Here’s different large capitalist saying, chill.

Musk’s latest Twitter escapade coincided with caller bullish views from Wall Street. First up were Wedbush analysts, lifting their bull people to $1,800 a stock from $1,500, citing the underlying EV maturation communicative and a large China market.

Meanwhile, Jefferies expert Philippe Houchois connected Monday lifted his Tesla terms people to $1,400 a stock — the highest connected Wall Street — from $950 successful a enactment to clients. Here’s the crux of Houchois’ presumption and our call of the day wherever helium lays retired however bequest car makers are struggling to drawback up to Tesla:

“Like successful 2020, Tesla’s terms is sending a informing of relevance to accepted and besides challenger OEMs [original instrumentality manufacturer]. With an acceleration of self-funded maturation successful Q3 and un-heard-of returns astatine a marque terms constituent moving towards measurement segments, Tesla looks much scaled up contiguous than astir OEMs and successful presumption to crook the Legacy zero-sum-game into a antagonistic one,” said Houchois.

The expert pointed retired Tesla’s past 2 sets of “impressive results,” and “multiple competitory edges” that are apt to past longer than galore investors think. Such arsenic “direct selling to artillery density/cost, software, spot design/sourcing and design-to manufacture, altogether avoiding the complexity and inefficiency that are plaguing the industry’s concern model.” And the effect from OEMs is slow, with lone 1 oregon 2 challenges tackled astatine a time, said Houchois.

Tesla is besides reaching a constituent wherever it tin “balance affordability and speed, goals which are arsenic important arsenic profitability successful Elon Musk’s vision,” said the analyst.

As exemplary scope and terms points drift toward midmarket and distant from BMW and Mercedes-esque prices and with a still-to-be-confirmed Model 2 connected the way, Tesla could drawback stock from bigger OEMs, “potentially claiming a disproportionate stock of the manufacture nett excavation successful the coming 3-to-5 years arsenic legacies participate the borderline dilutive EV modulation phase.”

The buzz

Shares of Live Nation Entertainment LYV, +15.14%, are dropping aft a deadly Houston euphony festival implicit the weekend, wherever a assemblage surge killed 8 radical died and near scores injured.

U.S.-listed Chinese acquisition companies Gaotu Techedu GOTU, +0.35% and New Oriental Education & Technology EDU, +0.49% are surging connected a study successful The Wall Street Journal that China plans to contented licenses to companies to connection after-school tutoring. 

The archetypal acceptable of net since its archetypal nationalist offering are up from edifice radical First Watch FWRG, -1.23%, with online videogame radical Roblox RBLX, -5.50% and payments elephantine PayPal PYPL, -1.07% owed aft the close.

Jefferies analysts downgraded German car shaper Volkswagen VOW3, -2.53% VOW, -4.20% to underperform from buy, saying CEO Herbert Diess’ changeless Tesla references person “become counterproductive, highlighting vulnerabilities alternatively than imaginative solutions.”

Elon Musk’s member Kimbal sold 88,500 Tesla shares connected Friday, according to a Securities and Exchange Commission filing.

The House passed a $1 trillion public-works bill late Friday, but President Joe Biden whitethorn beryllium facing hurdles connected ambitions implicit a bigger spending bill.

China exports surged 27% from a twelvemonth ago. The large U.S. information this week volition travel Wednesday, with October user prices.

Trans-Atlantic routes betwixt the U.S. and 30 countries officially reopen connected Monday. And arsenic COVID vaccines for younger kids rotation retired successful the U.S., 1 of the world’s oldest six-year-olds tweeted his encouragement:

The markets

Stock futures ES00, +0.07% YM00, +0.19% are mixed, with Nasdaq-100 futures NQ00, +0.02% somewhat down. Oil prices CL00, +0.89% NQ00, +0.02% are climbing aft Saudi Arabia’s Aramco announced large December terms hikes for Asia and Europe. Natural-gas prices hikes look to beryllium getting nary alleviation successful Europe.

There were large moves elsewhere successful crypto, arsenic Ethereum ETHUSD, +2.45% topped $4,700 for the archetypal time.

Random reads

How a gambler with duffel bags of currency got a Los Angeles casino into large trouble.

A distressed teen was rescued aft a passing motorist spotted her manus awesome that has gained popularity connected TikTok.

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