Benzinga | Jan 1, 2022 11:20AM EST

Why This Analyst Thinks Tesla Is a $2,500 Stock And When It May Reach That Price Target

Tesla, Inc. (NASDAQ:TSLA) bull Gene Munster, Managing Partner at Loup Funds, is optimistic that the EV giant's stock will continue to outperform.

Longer term, Tesla shares are worth $2,500, the analyst said. Apart from EVs, the company has forayed into energy, autonomy, HVAC, vertical take-off and landing, or VTOL, and robots, the analyst noted.

The stock's trajectory over the next year cannot be predicted, the analyst said. Long-term, Loup's valuation case is based on six times revenue in five years, he added. This, the analyst said, is essentially in line with Apple, Inc.'s (NASDAQ:AAPL) hardware, software and services revenue multiple.

Tesla will likely go from $70 billion in revenue in 2022 to $400 billion in 2027, Munster estimates. Applying a six-times multiple on 2027 revenue yields a $2,500 stock, the analyst said.

In the near term, the analyst expects Tesla to beat delivery forecasts. Tesla will likely exceed consensus expectations of 1.2 million deliveries for 2022 and finish the year between 1.2 million to 1.3 million vehicles, the Munster noted.

Tesla closed Friday's session down 1.27% at $1,056.78.

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Photo: Courtesy of tesla.com