Tesla stock to hit $ 1,000 in bullish deal as global demand climbs

Shares of Tesla Inc. could double from current levels as global demand for electric vehicles increases over the next five years, according to a Wall Street analyst.

Global demand for electric vehicles could reach 10% of auto sales by 2025, up from 3% currently, wrote Dan Ives, analyst at Wedbush Securities.

He raised his price target to $ 560 per share and his bullish scenario to $ 1,000 on the assumption that Tesla could deliver 1 million vehicles by 2023 (possibly 2022).

Teleprinter	security	Latest	Change	% Change
TSLA	TESLA INC.	514.82	+25.20	+ 5.15%

“We believe that this demand dynamic will disproportionately benefit the clear leader in the EV category, Tesla, over the next few years, particularly in the key region of China which we believe could account for ~ 40% of its EV deliveries by 2022, ”he wrote.

According to him, Tesla’s Shanghai Gigafactory, which opened in October 2019, will give the electric vehicle maker a “major competitive advantage” over domestic players BYD Auto Co., Nio, Xpeng and Li Auto Inc., which are expected also benefit from growing demand.

LAS VEGAS CASINO RECOVERY THREATENED BY CORONAVIRUS LOCKDOWNS IN NEW CALIFORNIA

European efforts to reduce carbon emissions and increased regulatory control will lead to a wave of demand led by France, Germany, Italy and the UK. Tesla aims for its Berlin Gigafactory to start production in July.

Ives thinks that a Biden administration could potentially provide another boost to the EV space through tax credits and incentives.

The S&P Dow Indices announced last week that Tesla shares would be added to the S&P 500 on December 21 as part of the index rebalancing. The Palo Alto, Calif., Electric car maker, which will be one of the largest companies to join the S&P 500, recently made a fifth consecutive quarterly profit.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Shares rose 20% within four trading days of the announcement and are up 485% this year.