Tesla (TSLA) shares rose almost 10% to a record on Monday, exceeding $ 500 per share for the first time.
The strong advance in the actions of the electric car manufacturer came as a result of a bullish call from Oppenheimer analyst Colin Rusch, who raised his target price in Tesla to $ 612 per share, compared to $ 385 previously and representing one of Highest on Wall Street.
A fundamental principle of the thesis of the Rusch bull was based on his conviction that Tesla is still far ahead of its competitors in autonomous innovation.
Rusch said the treasures of information collected from hundreds of thousands of vehicles on the road have allowed Tesla to create a database for future developments in autonomy.
“They have 600,000 cars on the road collecting data from all their sensor suites, collecting what we consider ‘corner cases’ – you know, the strange lots, the unusual circumstances with which a car could bump into the road,” Rusch said to The Ticker of Yahoo Finance on Monday. “And we believe that the data will help them to redesign their autonomous system.”
Tesla has previously promoted its use of data to improve existing functions such as Smart Summon, which CEO Elon Musk said in October that he had used more than a million times.
“This really illustrates the value of having a massive fleet because it allows us to collect these corner cases and learn from them and use fleet learning and improve quickly, just as Navigate on Autopilot did on the highway,” Musk said during a call with analysts about the results of the third quarter of Tesla in October. “This really is just the beginning, as we collect more data and the functionality of autopilot and complete self-driving improves.”
Rusch, on the other hand, agreed with the benefits Tesla obtained from the scale.
“They have 600,000 cars compared to the next competitor who is between 600 and 1000 cars collecting data,” Rusch said. “We believe it is a key advantage.”
Rusch also cited the speed at which Tesla developed its China Gigafactory as a factor in its bullish outlook on the action.
“The first shovel that fell to the ground on the first vehicle was less than a year. We believe that has alerted many car manufacturers to an existential threat, not only from a technological perspective but from a manufacturing perspective, “said Rusch.
That accelerated time, from starting a land in Shanghai in January 2019 to delivering its first vehicles built in China earlier this month, marked a major change in the production problems Tesla had suffered a couple of years earlier in its main factory previous in Fremont, California
While overall car sales in China have slowed, analysts met in the opinion that putting the factory online quickly was a great victory for Tesla. And that milestone added to a series of positive developments for the company: just a few days before delivering its first car, Tesla reported record deliveries in the fourth quarter of 2019 of 112,000 vehicles, 23% more than the previous year.
“We think they are really learning from those mistakes and making some real changes in their processes,” Rusch said.
Follow her on Twitter: @emily_mcck“data-reactid =” 42 “>Emily McCormick is a Yahoo Finance reporter. Follow her on Twitter: @emily_mcck
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