On CNBC, Mizuho Securities analyst Vijay Rakesh said growth stocks have seen some headwinds in the recent period due to the prospects of rate hikes by the Federal Reserve.
He added that Tesla, Inc. (NASDAQ:TSLA) is a technology leader in the electric vehicle space and its growth and profitability margins are well ahead of other companies in the industry.
Tesla has a vertically integrated model and does almost everything in house, including battery, which can help in controlling costs and driving better margins, he said. No other automotive original equipment manufacturer is “as vertically integrated or even close” to Tesla, Rakesh said.
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Mizuho reiterated its Buy rating on Tesla with a price target of $1,300.
Price Action: Shares of Tesla jumped 10.7% to close at $936.72 on Monday, adding another 0.1% in after-hours trading.
