William Blair reiterates Market Perform rating on Tesla stock

Investing.com - William Blair has reiterated its Market Perform rating on Tesla (NASDAQ:TSLA) stock, according to a research note released Friday. The stock, currently trading at $347.54, has shown strong momentum with a 47.08% return over the past year, according to InvestingPro data.

The research firm noted that Tesla’s new incentive plan for CEO Elon Musk indicates his long-term commitment to the company. The plan sets a goal of reaching an $8.5 trillion market cap, compared to its current market cap of $1.12 trillion, which William Blair described as "an incredible achievement" if accomplished. InvestingPro’s analysis indicates Tesla is currently trading at premium multiples, with a P/E ratio of 190.16.

William Blair expects the incentive plan to pass shareholder approval, similar to how the 2018 plan was approved and later ratified last year. The plan could potentially award Musk 25% ownership in the company, a target he has mentioned multiple times.

The firm indicated that this news, combined with Thursday’s public robotaxi rollout, is improving Tesla sentiment and overshadowing William Blair’s near-term concerns about environmental credit revenue.

Despite the positive developments around Musk’s incentive plan, William Blair maintained its Market Perform rating on Tesla stock.

In other recent news, Tesla reported a rise in new-car sales in the UK by 7.63% in August compared to the same period last year, as the electric vehicle market continues to expand. Meanwhile, Tesla’s shipments in China decreased to 83,192 units in August, though this marked a 22.5% increase from July. Wedbush maintained its Outperform rating on Tesla, keeping the price target at $500, emphasizing CEO Elon Musk’s commitment to the company through 2030. Piper Sandler reiterated its Overweight rating with a $400 price target, highlighting Tesla’s progress in expanding its robotaxi service area in Austin and the upcoming launch of Full Self-Driving version 14. Additionally, Tesla has raised the price of its Cyberbeast model by $15,000, bringing it to $114,990, with the introduction of a new Luxe Package that includes Full Self-Driving capabilities and supercharging access. These developments reflect Tesla’s ongoing efforts to innovate and adapt within the competitive electric vehicle market.

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