Tesla already has a stronghold on the American electric vehicle market, with a 60% market share for the first three quarters of the year, reports Kelly Blue Book.
“This strike, in our view, is really going to hamper the Detroit Three’s ability to compete in the EV market, just with the much higher labor costs,” added Nelson. With this in mind, CFRA estimates Tesla’s stock will have a 12-month price target of $325 per share. At the time of writing, Tesla’s price is $241.94 per share.
Let’s not forget that Tesla has cut the pricing of its electric vehicles, making them even more appealing to customers. A new Model 3, for example, can be had for as little as $33,000 after incentives. That’s a remarkable price and very difficult to compete with if you’re a legacy automaker.
Tesla CEO Elon Musk has already said he is willing to sacrifice profits to achieve a 50% sales growth target.
