Theo O’Neil, an analyst who covers Tesla Motors, is taking his price target on the stock to $100 from $38 based on better than expected first quarter results
“I know this looks crazy but here’s what’s going on,” said O’Neil in an email outlining his improved outlook. “Tesla is clearly taking more and more market share, the leasing opportunities are growing, it is shipping to Europe where the economics are far more compelling, it has a pipeline of new products and the Model S may be the “perfect” car.
Tesla’s stock is one of the most heavily shorted – and volatile – on the NASDAQ. Often when the stock goes up, it’s the shorts covering. But O’Neil, director of Litchfield Hills Research, doesn’t think so this time. “Yes I know there is short covering, but I do think this stock is going to $100,” he said.