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: Another analyst sees Tesla topping $1,000, this time because of energy business

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Canaccord Genuity analyst Jed Dorsheimer on Monday joined some on Wall Street who believe Tesla Inc. stock will shoot past $1,000, thanks in this case to the Silicon Valley car maker’s years-long lead in battery and energy storage technology.

Dorsheimer upgraded his rating on Tesla
TSLA,
+3.88%

stock to buy, from hold, and more than doubled its price target on the stock to $1,071, from a previous target of $419.

The price target and stock multiples may be “rich,” but “Tesla holds a several-year lead and is now expanding aggressively into storage and [we] thus feel our multiple is warranted,” the analyst said in a note Monday.

Tesla’s engineering “will radically change the battery market, enabling the company to further the lead in BEVs and expand into the solar and home energy markets with its Powerwall products,” he said.

Battery supply constraints are seen beginning to subside by next year, just in time for Tesla’s in house-design battery cell to come in line in the factories under construction in Texas and in Berlin, Germany, as well as the “giga factory” in Nevada, they said.

“We are expecting accelerated growth in the energy generation and storage business,” the Canaccord analyst said.

Canaccord’s above-$1,000 Tesla price target is among the highest on Wall Street. Analysts at Oppenheimer, Piper Sandler and Wedbush are among those with Tesla price targets at or above $1,000, according to FactSet.

The average price target on Tesla stock as surveyed by FactSet is $695, representing a 0.5% downside from Monday’s prices.

Tesla shares have lost 0.8% this year, but gained more than 500% in the past 12 months. That compares with gains around 10% and 48% for the S&P 500 index
SPX,
-0.13%

in the same periods.

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