Tesla: shares off to a great start after bullish note

(CercleFinance.com) - Shares in Tesla are up in the first few minutes of trading on Friday, after broker Jefferies upgraded the luxury electric carmaker to "buy" from "hold".


According to Jefferies, Tesla is one of the few carmakers that is likely to grow its earnings in 2019-2020.

"The resolution of manufacturing issues is underway and after third-quarter, we're more convinced the company can de-lever organically," it wrote in a note.

Jefferies said that it has raised its estimates "significantly" and now expects positive EBIT of 620 million dollars in 2019, which has prompted it to raise its price target from 360 dollars to 450 dollars.

The share is currently up 3.7% at 376.6 dollars in early exchanges on Wall Street.

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