Evercore ISI analyst Chris McNally boosted the company’s numbers price target on Tesla (TSLA) from $195 to $275 and maintains an In Line rating on the stock. In keeping with the company’s valuation approach, which is a ‘Tale of 2 TSLAs’, where it assigns one multiple to the ‘core’ industrial revenues for things ‘they make/sell now’ and then reverts to a market-implied ‘ call option bucket, The size of the “implicit call option basket” has increased from $600 billion to approximately $900 billion and the implied market probability of success of 30%-40% to 50%, the analyst tells investors. However, the analyst also notes that at Tesla’s recent peak, the market assigned a 100% to 125% chance of success to the “options basket” that is now valued at around $1 trillion.
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