Tesla got a rating upgrade from Credit Suisse, despite recent challenges facing the electric carmaker.
Credit Suisse raised the rating on Tesla shares upgraded to neutral from underperform. Credit Suisse analyst Dan Levy boosted his price target for Tesla shares to $580 from $415, citing that Tesla has “more edge” in terms of electric vehicles’ potential to replace conventional ones.
Levy suggested that the Covid-19 crisis makes it even more challenging for traditional vehicle makers to balance the long-term shift to electric vehicles.
According to Levy, declining demand and possible supply shortfalls were short-term risks for Tesla. He said that the company is burning cash at the rate of $300 million per week due to the shutdown at its Fremont, California, plant. Nevertheless, the analyst feels that Tesla leads its rivals in battery development, has displayed increase in liquidity and improvements in execution.