Could TSLA Stock Reach $350 Price Range?

Tesla StockEven though Tesla Motors Inc (NASDAQ:TSLA) stock has declined about 27% since the beginning of 2016—mostly due to lower guidance on vehicle deliveries and a weak market—an analyst at Dougherty & Company sees huge gains for TSLA stock in 2016.

Andrea James has maintained a “Buy” rating on TSLA stock with a price target of $355.00, writing that investors should pick up shares below $200.00. That would be a gain of 98% from today’s TSLA stock price, which hit a new 52-week low yesterday. (Source: “Dougherty & Co Defends Tesla, Sees 92% Upside From Here,”, February 3, 2016.)

“We believe that Tesla just needs to do what it says it is going to do, and the stock can work in 2016,” James wrote. She also added that Tesla is likely to “set a positive tone” for the full year during its earnings call and profitability in 2016 “should be a catalyst for the stock, as it was in 2013.” (Source: Ibid.)

Tesla is working to increase production, James noted. Tesla is about to start production of battery cells at its “Gigafactory” in Nevada, which should give a boost to the number of cars the company is able to deliver. Tesla is also about to unveil the “Model 3” on March 29 and may soon begin taking orders.

James expects Tesla to report earnings per share of $0.06 on revenue of $1.73 billion at its earnings call for the fourth quarter on February 10. He also sees Tesla guiding earnings per share of $1.23 on revenue of $8.5 billion for the year.