Tesla Motors, Inc. (NASDAQ: TSLA) – Tesla analyst sees conciliatory approach for Chinese regulators, EV ‘Golden Age’ ahead

Tesla Inc (NASDAQ: TSLA) has been warned by the Chinese State Administration for Market Regulation regarding quality issues with electric vehicles sold in China.

A Wedbush analyst sees the issue as a failure on the radar for Tesla and instead focuses on the big picture of the automaker.

Tesla analyst: Daniel Ives maintained a neutral rating on Tesla with a price target of $ 950, with a bullish case target of $ 1,250.

The Tesla thesis: Tesla’s approach to taking a more conciliatory tone with China is encouraging, Ives said in a note Tuesday.

A standoff with Chinese regulators will be the last thing a Tesla investor would want to see, given the company’s sales in China more than doubled in 2020 despite the COVID-19 pandemic and are set to represent. around 40% of its sales by volume by 2022, the analyst said.

Related Link: Tesla Gets $ 1,200 Street Price Target: ‘The Fireworks Ain’t Over Yet’

The regulatory agency released Tesla with a slap on the wrist, urging the company to focus on strengthening internal management of quality controls in the country, he said.

“As such, Tesla ‘sincerely accepted advice from government departments and thought deeply about the shortcomings,’ a smart move rather than tackling the problems,” Ives said.

You’re here must work around quality and regulatory issues in China over the next few months as a “golden age” of electric vehicles looms, the analyst said.

“With some contained recalls and quality issues for Tesla, we believe this is more of ‘growing pains’ as the company sees an EV demand trajectory even beyond bullish expectations for 2021 in this key region.

TSLA Price Action: On the last check, Tesla’s shares slipped 2.32% to $ 843.41.

Related Link: Tesla Apologizes to China’s Electricity Company After Viral Video

Photo courtesy of Tesla.