The outbreak of the COVID-19 has left the world in a state of chaos. With the world as a whole in lockdown, the very survival of the people and the economy is at stake. This pandemic has lead to a significant rise in the inflation rate. With shut shops and lack of capital, unemployment is one the verge of reaching a new high. But, Tesla gets an upgrade at Credit Suisse.
However, in the midst of all this, several companies and organizations have benefitted due to this outbreak. Tesla, the electric giant, is one of the major gainers. The company was listed as “Underperform” before the pandemic by the analysts at Credit Suisse, the Zurich based Investment firm.
Tesla Gets An Upgrade At Credit Suisse: Where Did It Go Right?
The automaker shares saw a steep surge of 14% on Tuesday (14/04/2020). Due to production delays, Tesla was marked at a rate of $415 per share price target. But the gain has now set the very same company at a price target of $580 per share.
According to Dan Levy of Credit Suisse, Tesla has managed to get the most significant competitive edge. He further went to add that the outbreak of the COVID-19 may have given Tesla a break they needed. As per Levy, the company now better positioned than before.
The Silicon Valley-based automaker is said to be competitively better positioned owing to the disruptions brought by the spread of the virus. Along with a revised per share price target, Tesla’s status updated from “Underperform” to “Neutral” by the investment firm.
But Levy still questioned whether Tesla would be able to ramp up its figures and supply. He also stated that the company might need to shut down the company’s factory in Fremont. This could see the company face a $300 million a week in cash burn.
The automaker’s share was by up by almost 7% in the Tuesday market, and the company has seen a rise of 56% in 2020. Despite the company’s facilities in the US shut, Tesla still managed to defy all odds and as a fighter yet again. The company has managed to post above expected numbers in the first quarter of the new year.
With improved liquidity and execution in the company production, Credit Suisse believes that Tesla will be able to sell 1.2 million vehicles per year by 2025.