News
Tesla gets new $800 price target from Wall Street firm who predicted $530
The New Street Research analyst who correctly predicted Tesla’s (NASDAQ:TSLA) rise to a $530 price target has once again raised the bar for the Silicon Valley-based automaker. Pierre Ferragu has increased the company’s price target from $530 to $800, stating Tesla’s industry-leading technology, demand, and execution as the reasons behind its increased anticipated value.
The company has seen a 22% increase in its price per share in 2020 alone. On Tuesday morning, TSLA stock price jumped by 5% to $536.20 in response to the price upgrade and amid signs that first deliveries of the Model Y crossover are imminent.
Ferragu predicted the company’s stock price would hit $530 per share in May 2018, citing Tesla’s increasing demand from consumers and dominance in the electric vehicle sector. The Elon Musk-led company has continued to improve the performance and range of its fleet of electric cars through technology advancements and frequent software updates, further broadening its appeal among car buyers.
The Model 3 was also released and began deliveries less than a year before the prediction and its overwhelming popularity was just another reason Ferragu felt the company’s stock would skyrocket.
1) We increased our $TSLA price target to $800 today. Worth noting, though, our initial target of $530 was set in 2018, so 2 years down the line, compounded 20% p.a., $800 is the right place to be. Not much has changed in our conviction!
— Pierre Ferragu (@p_ferragu) January 21, 2020
According to TheStreet, Tesla could sell around 20 million units in its “ultimate addressable market,” leaving room for growth that will help the company attain its $800 price point in the future.
Ferragu addressed his new price target in a note, stating Tesla will sell between two million and three million cars per year in 2025 and beyond. This would make Tesla’s market value somewhere between $230 billion and $350 billion or between $1,100 and $1,700 per share.
“The stock will remain volatile, as the spread between bull and bear cases remains wide,” Ferragu stated. “And God only knows what the next controversy will be.”
Tesla’s Q4 2019 earnings call is scheduled for January 29. As the company’s Model Y has received its CARB certification and VINs are registered on the NHTSA website, it appears that the car may see first deliveries ahead of its projected Summer 2020 delivery time.
But the Model Y will not be the only indicator of how the company will perform in the new year. Analysts have previously predicted that the performance of Gigafactory 3 in Shanghai will be a key indicator of Tesla’s success in the global market heading into 2020.
Based on Tesla’s successful Q4 delivery numbers and Model 3’s continued dominance in the luxury sedan category, Ferragu’s $800 price target isn’t as far-reaching as one might think.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Elon Musk
SpaceX secures win as US labor board drops oversight case
The NLRB confirmed that it no longer has jurisdiction over SpaceX.
SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk.
The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.
In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.
As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing.
The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.”
In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.
SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments.
SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.
News
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
The union has denied the electric vehicle maker’s allegations.
Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded.
The union has denied the electric vehicle maker’s allegations.
In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.
Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.
IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.
The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.
Approximately 11,000 employees are eligible to participate in the vote.
The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.
Elon Musk
Elon Musk’s xAI plants flag in Bellevue AI hotspot
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings.
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.
The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.
xAI has not publicly commented on the lease.
xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.
xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.
Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.
Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.