A 'comeback story for the ages': Here's what 4 analysts are saying about Tesla's 4th-quarter earnings win

Price target: $710

Rating: Neutral

Noted Tesla bull Dan Ives viewed the company's latest report as "potentially game-changing," as stable profitability and healthy cash flow secured Tesla's spot as a lasting player in the EV space. The 500,000-deliveries estimate is "conservatively positive," Ives said, and the company could deliver as many as 550,000 vehicles in 2020 and support a continued rally for the soaring stock.

"The bull party will continue as the aggressive trajectory of Giga 3 production and demand out of Shanghai look very strong out of the gate," the analyst wrote.

Wedbush also updated its long-term bull case for the automaker, noting that Tesla shares could reach $1,000 if it can ramp up production in Shanghai and drive demand in China in the years to come. The firm's new Tesla price target reflects heightened demand for EVs, and past fears around improving production rates are quickly fading, the note said.

"For Musk, despite all the noise over the last year and balancing a myriad of projects at Tesla (while running SpaceX and launch targets) last night completes a "comeback story for the ages" from the dark days seen last April," the team wrote.

Price target: $750

Rating:

Canaccord Genuity now stands as Wall Street's biggest Tesla bull, with their latest price target implying a 16% upside from Thursday's opening price. Though the new target is based on a lofty 2021 EPS projection of $25.03, the firm believes Tesla's opportunity in "disrupting the legacy transportation industry" warrants such rapid profit growth.

The analysts also praised Tesla's advantage in the battery, echoing other firms in emphasizing the importance of its upcoming battery tech event. The automaker's "greatest near-term risk" is its Shanghai factory's exposure to the coronavirus, the analysts noted. If the outbreak is efficiently contained in the coming weeks, Tesla is on pace to reach numerous records in the new year, Canaccord Genuity added.

"Given the numerous positive data points that were discussed and the cornerstone of of continued profitability and free cash flow generation, we view the company as solidly positioned as the leader of the EV revolution," the analysts wrote.

Price target: $440

Rating: Sell

Despite the massive earnings beat, not all firms lifted their doubts on Tesla's future growth. The stock's current risk/reward scenario is "unfavorable at current levels," and risks surrounding the Chinese factory's ramp-up could quickly pull shares lower, CFRA analyst Garrett Nelson wrote.

Tesla failed to report capex figures related to its new factory in Germany, Nelson said, leaving investors in the dark as to whether the facility reaches regular production as efficiently as the Shanghai factory. The analyst downgraded Tesla stock to "sell" from "hold," and his new price target implies a 32% tumble from its Thursday opening price.

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