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Gary Black raises Tesla price target 27% to $380 on ‘increased belief’ that the Elon Musk-led company will launch a $25,000 hatchback

Gary Black raises Tesla price target 27% to $380 on ‘increased belief’ that the Elon Musk-led company will launch a $25,000 hatchback

Tesla Inc. (NASDAQ:TSLA) could see significant growth from a new budget electric vehicle offering, according to a prominent investor Gary Blackwho raised his price target for the EV maker by 27% to $380 from $300 on Monday.

What happened: Zwart, Managing Partner at The Future Fund LLCattributes his “increased conviction” to expectations that Tesla will launch a $25,000-$30,000 hatchback model, potentially capturing about 15% of the global compact car market.

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Its revised earnings estimates exceed the Wall Street consensus, predicting adjusted earnings per share of $3.80 for 2025 and $17.00 in 2030.

The investment thesis comes amid Black’s recent portfolio adjustments. In November, his fund cut its Tesla position to $351 after the stock price rose 150% from its April low. The Future Fund’s Tesla investment strategy has proven profitable, with an average purchase price of $162 and a sale price of $252 since the beginning of 2023.

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Tesla is among the top five positions The Future Fund Active ETF (NYSE:FFND).

Popular: It’s no wonder Jeff Bezos owns over $70 million worth of art – this alternative asset has outperformed the S&P 500 since 1995, with an average annual return of 11.4%. Here’s how regular investors get started.

What happened: Black identified several potential catalysts for Tesla, including continued EV usage growth of 20-25% per year, greater adoption of full self-driving, and a possible streamlining of the autonomous driver’s license under the President-elect Donald Trump‘s administration.

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