Tesla stock

Tesla factory. Image source: The Motley Fool. 55% upside? Last Wednesday, New Street analyst and longtime Tesla bull Pierre Ferragu boosted his 12-month price target on Tesla stock from $1,290 to $1,580. Ferragu justifies his price target with a view for record fourth-quarter deliveries, impressive production rates at the company's factory in Shanghai, huge revenue growth next year, and more. Starting with Ferragu's estimates for Tesla's fourth-quarter deliveries, he says that the electric-car company's deliveries could come in as high as 280,000 to 285,000 in Q4. The midpoint of this range would imply 56% year-over-year growth and 17% sequential growth -- an impressive feat in a supply constrained environment. This would put total deliveries for the year at 910,000, or about 87% higher than last year. The analyst also thinks that Tesla's total revenue next year can approach $80 billion. This is about $9 billion higher than the current consensus analyst estimate calls for. Notably, Ferragu believes that Tesla is now producing electric vehicles at its factory in China at an annualized rate of more than 700,000 -- well above what Tesla initially said the factory would do. Adding this production to Tesla's factory in Fremont and the company's new factories in Texas and Germany will help sales soar next year, the analyst believes. Valuation may be the biggest risk facing Tesla investors But the riskiest part of this thesis may be Ferragu's view on the high valuation he believe...

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Shares of Tesla ( -0.35%) are up 102% year to date, but analysts believe the popular EV stock hasn't topped out yet. New Street Research analyst Pierre Ferragu sees the stock reaching $300. That is about 21% above the current share price. Piper Sandler sees the stock reaching $280 based on Tesla's software opportunity and what it can do for the company's profits over the next few years. Software is, indeed, a big opportunity, since Tesla charges as much as $15,000 for its full self-driving car software. But its profit-earning ability runs deeper than software. Long-term investors should pay attention to Tesla's relentless pursuit of reducing costs across the business. I believe this is still an underappreciated aspect of the company's culture that makes the stock worth buying right now. Built for shareholder returns Tesla has experienced exploding demand in recent years, but what may not get enough attention is the rapid increase in the company's Over the last five years, Tesla's profit margin has risen from negative 20% to positive 13.7%. Revenue has more than tripled, but improving margins have driven earnings per share up an incredible 2,500%. There are several ways Tesla accomplishes this, and several reasons why it should continue growing earnings and fueling a higher stock price over the long term. Tesla designs everything in-house, which goes a long way to saving money on alternative products and materials. Tesla's goal is 20 million electric vehicles per year. It's...