Evercore ISI analyst Chris McNally raised the firm’s price target on Tesla (TSLA) to $275 from $195 and keeps an In Line rating on the shares. Consistent with the firm’s valuation approach of a “Tale of 2 TSLAs,” where it assigns one multiple to “core” industrial revenue for things “they make/sell now” and then backs into a market implied “call option” bucket, the firm increased the size of the “call option implied basket” to about $900B from $600B and the implied market probability of success to 50% from 30%-40%, the analyst tells investors. However, the analyst also notes that at Tesla’s recent peak, the market assigned a 100%-125% probability of success for the “option basket” that it now valued at about $1T.
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