TSLA target reaches $2,322, defying gravity with astronomical increase

You know what a fugazi is?” It’s how Mark Hanna’s (Matthew McConaughey) greets us in The Wolf of Wall Street. He reminds us that “Nobody knows if a stock is going to go up, down, sideways or in circles.

Tesla’s stock certainly shows us how dramatic the lack of consensus between analysts can be. Piper Sandler, an American multinational independent investment bank, set the stock price target for Tesla at $2,322.

Read Also: Elon Musk becomes the 7th richest man, passing Warren Buffett

Alex Potter, the managing director and senior research analyst behind this bold move, values Tesla using a discounted cash flow model (DCF model). By definition, it forecasts cash flows using the concepts of “time value of money” (TVM). The formula for computing TVM includes inputs such as interest rates, profit margins, and sales for a given timeframe. This dramatic increase is justified by an increase in sales and profit margin.

Even Elon Musk tweeted “Wow” on Monday night.

Tesla’s stock soared more than 500% over the past year. It lets us wonder whether it’s a fugazi, a whazy, a woozie or Tesla will meet customer expectations in the midst of this pandemic where the economy faces supply chain disruptions.

Do you want to publish on Apple News, Google News, and more? Join our writing community, improve your writing skills, and be read by hundreds of thousands around the world!

More from Business – News Landed

+ Instagram launches redesigned “Shop” page and Facebook Pay support
+ Mary Meerker invests in EdTech Byju’s, the favorite teacher for every student

Popular Stories – News Landed

+ Android and iOS are releasing 117 new emojis in the fall!
+ Netflix’s new thriller ‘The Gray Man’ directed by the Russo Brothers is its biggest yet

Related Stories

Solar Energy: The light to Africa

Africa's dependance on hydro power energy has lead to almost 1/3 of the continents load shedding. Africa, in the...

Tesla Motors: Facts about the Elon Musk EV company you didn’t know!

1. The company's name is a tribute to inventor Nikola Tesla. 2. The company was founded by Eric Eberhard and...

Featured Stories

Will Telosa be the “City of the Future” by 2030?

Shenzhen, China was a sleepy fishing village in 1979. A mere forty years later, it is one of the...

Low-cost lead adsorbing water filter designed by Indian students

Two students from India have designed a low-cost lead water filter that can be made with locally sourced materials....

Make it Rain! Dubai uses drones to conjure rain from the skies

You can order food, hail a driver, and even find a spouse with the click of a button; but...

Physicists have created the world’s thinnest magnet. Just one atom thick!

Can you guess the size of the thinnest magnet? It is just one atom thick. Scientists from the University of...

Boris Johnson and Rishi Sunak reverse decision to avoid self-isolation following ping by NHS contact tracing

Following the Health Secretary's diagnosis with COVID-19, the Prime Minister and Chancellor were notified by NHS Test and Trace...

India is one of the largest producers of COVID vaccine and yet faces major internal shortages

The worsening situation in India finally gained some stabilization around September 2020. Usually, when things start getting better, people...