CFRA Raises Estimates on Tesla as Inflation Bill Cuts Competition
2022.08.18 16:29
CFRA Raises Estimates on Tesla (TSLA) as Inflation Bill Cuts Competition
By Michael Elkins
A CFRA analyst reiterated a strong Buy rating on Tesla (NASDAQ:TSLA) and raised the price target to $1,245 from $1,125. The analyst raised CFRA’s estimate to $12.45 from $11.90 for ’22, to $17.25 from $16.20 for ’23, and to $20.75 from $18.75 for ’24.
The CFRA analyst feels that Tesla may be the “biggest winner” from the new inflation act signed by President Biden on Tuesday. He said it was like “Christmas in August” as most versions of the industry’s two bestselling EVs (Tesla’s Model Y and Model 3) become eligible for the $7,500 federal EV tax credit effective January 1, 2023.
Unfortunately, a lot of other electric vehicles are ineligible for the credit. Nearly 70% of Tesla’s competition currently for sale in the U.S. suddenly became ineligible for the tax credit under the new law, alleviating a large portion of the company’s competition.
TSLA is up 0.71% in pre-market trading at the time of writing.
