<!--*/ */ /*-->*/

Shares of electric-car maker Tesla (NASDAQ: TSLA) have been roaring higher recently. The stock has doubled in the last six months as investors cheer the company's rising Model 3 sales and the completion of a new factory in under a year's time.

Following the company's better-than-expected fourth-quarter deliveries and the beginning of Shanghai-made Model 3 deliveries to customers in China, one analyst is betting the automaker's stock can keep moving higher over the next 12 months.

Argus Research analyst Bill Selesky boosted his price target from $396 to $556 on Tuesday, citing Tesla's record 112,000 deliveries in Q4, an improved outlook for "economies of scale in 2020 production and delivery results," and notable momentum at the company's new factory in China. Growth in Tesla's energy business will help, too, Selesky believes.

The analyst now expects Tesla's earnings per share this year to come in at $5.96, up from a previous estimate of $4.40.

The company has definitely seen a big increase in production and deliveries -- enough to likely lead to significantly improved economies of scale in 2020. Tesla's fourth-quarter deliveries of 112,000 helped the company wrap up the year with total 2019 deliveries up 50% year over year, highlighting the electric-car maker's impressive growth. Further, Tesla said in its Jan. 3 update on production and deliveries that its Shanghai-based factory had already produced nearly 1,000 vehicles and had started deliveries. "We have also demonstrated production run-rate capability of greater than 3,000 units per week, excluding local battery pack production which began in late December," Tesla added. 

Assuming Tesla can achieve Selesky's forecast of $5.96 in earnings per share, the analyst's price target implies the automaker will trade at 93 times next year's earnings. This valuation, therefore, suggests that Tesla can keep growing at rapid rates for years to come.

The electric-car maker's recent strong growth, its successful launch of a China-based factory to better serve the world's largest auto market, and Tesla's plans to begin deliveries of its upcoming Model Y crossover in 2020 do suggest more sharp growth is on the way for the electric-car maker. However, investors should recognize that a $556 price target requires a degree of speculation from investors, betting that the company's lead in the electric-car market can be sustained over the long haul.

To Selesky's credit, Tesla's recent sales momentum and the company's swing from negative to positive free cash flow on a trailing-12-month basis make a good case for the scalability of the automaker's business as production and deliveries increase. But if Tesla hits any detours, or if competition intensifies more rapidly than anticipated, investors may reassess their rosy view for the company -- and Selesky's price target could prove to be further away than it might seem today.

Of course, Tesla shareholders may not want to hit the sell button just as the automaker is demonstrating great business execution. But they should at least recognize that the company will need to deliver incredible results in 2020 to justify further stock price appreciation throughout the year.

10 stocks we like better than TeslaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Location*Please select…United StatesAfghanistanÅland IslandsAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBolivia, Plurinational State ofBonaire, Sint Eustatius and SabaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCongoCongo, the Democratic Republic of theCook IslandsCosta RicaCôte d'IvoireCroatiaCubaCuraçaoCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland Islands (Malvinas)Faroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHoly See (Vatican City State)HondurasHong KongHungaryIcelandIndiaIndonesiaIran, Islamic Republic ofIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKorea, Democratic People's Republic ofKorea, Republic ofKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMacedonia, the former Yugoslav Republic ofMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesia, Federated States ofMoldova, Republic ofMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian Territory, OccupiedPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarReunionRomaniaRussian FederationRwandaSaint BarthélemySaint Helena, Ascension and Tristan da CunhaSaint Kitts and NevisSaint LuciaSaint Martin (French part)Saint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint Maarten (Dutch part)SlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia and the South Sandwich IslandsSouth SudanSpainSri LankaSudanSurinameSvalbard and Jan MayenSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanTanzania, United Republic ofThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluUgandaUkraineUnited Arab EmiratesUnited KingdomUnited States Minor Outlying IslandsUruguayUzbekistanVanuatuVenezuela, Bolivarian Republic ofViet NamVirgin Islands (British)Virgin Islands, U.S.Wallis and FutunaWestern SaharaYemenZambiaZimbabwe

Yes! I would like to receive Nasdaq communications related to Products, Industry News and Events.You can always change your preferences or unsubscribe and your contact information is covered by our Privacy Policy.

Automatic Bottle Feeder Machine

Automatic Capping Machine, Bottle Filling Machine - Shengguan,https://www.cnsgmach.com/