Shares of Tesla (TSLA -1.16%) have been on fire, already climbing more than 600% over the past year, but they will surge to new all-time highs during 2021.
That's according to Argus Research analyst Bill Selesky. On Friday, Selesky raised his price target on Tesla's stock from $777 to $1,010. His new target represents potential gains for investors of roughly 21% over the closing price on Thursday of about $835.
Selesky called Tesla the undisputed leader in the electric vehicle (EV) space, saying that he expects EVs to represent a quickly growing segment of car sales, particularly as the cost of batteries puts them within reach of the typical car buyer.
"We also believe that Tesla is well-positioned to expand in the Chinese market and further believe that the incoming Biden Administration will offer rebates and new tax incentives to encourage consumers to buy EVs, which we think favors Tesla versus all the rest," Selesky said in a note to clients.
Will Tesla's stock price hit $1,010?
It's worth noting that Selesky isn't the only analyst with a price target above $1,000. Oppenheimer analyst Colin Rusch has a $1,036 price target, making him the most bullish among his Wall Street colleagues.
I think these forecasts may end up being conservative. There were plenty of doubting Thomases when Tesla announced its goal to deliver a half-million vehicles last year. When the dust settled on 2020, the company had produced 509,727 and delivered 499,550, barely missing a somewhat audacious forecast, even in the midst of a pandemic.
In conjunction with its recent earnings report, Tesla said: "Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021."
If that forecast is anywhere near accurate, Tesla's stock could go much higher.