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Argus sees major upside for Tesla

Published 08/08/2017, 08:31 AM
© Reuters.  Argus sees major upside for Tesla
TSLA
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  • Argus lifts Tesla (NASDAQ:TSLA) to a Buy rating and raises its price target to $444 to rep 25% upside potential on the EV automaker.
  • The firm underpins its upgrade on the strong level of Model 3 orders and now expects Tesla to break even in FY18 before reaching profitability in FY19.
  • Argus note: "Although the ramp-up of the Model 3 will boost labor and overhead costs in the near term, we expect these additional costs to diminish over the course of 2018. As such, we believe that Tesla will be able to reach its target of a 25% gross margin on the Model 3 late next year, in line with the margins already achieved on the Model S and Model X."
  • Shares of Tesla are up 0.94% premarket to $358.50.
  • Now read: Tesla: Bye Bye Dilution


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