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Tesla Inc. received another bullish approval on Friday from prolific Wedbush analyst Dan Ives, who raised his share price target by 33%, but he still will not recommend investors buy the stock. .
Ives said “the heart and lungs” of the investors’ bull thesis on Tesla TSLA,
has been focused on China, as consumer demand exploded through 2021, not only for Tesla’s Model 3s, but for electric vehicles from “impressive” domestic competitors such as Nio Inc. NIO,
Li Auto Inc. LI,
and Xpeng Inc. XPEV,
He said that although the competition is increasing, Tesla is “staying on top of the EV mountain”. And given the ‘robust’ global demand for electric vehicles, Ives now expects Tesla to surpass the 1 million delivery threshold in 2022, and said deliveries could start approaching 5 million per year. ‘by the end of the decade.
“While there are over 150 car manufacturers aggressively seeking the opportunity for electric vehicles around the world, currently in the electric vehicle market we believe this is Tesla’s world and everyone world pays rent, ”Ives wrote in a note to clients.
He raised his “base” price target for Tesla to $ 950, or 12.4% above Thursday’s closing price of $ 715. Its target is now the highest of 37 analysts surveyed by FactSet, and nearly double the average target of $ 498.66.
Tesla’s stock edged up 0.5% in pre-market trading. It fell 1.1% on Thursday, to close 4.0% below the record Jan 8 close of $ 880.02.
Joe Biden as president and a Democrat-controlled Congress should also provide a positive wind for the electric vehicle industry, Ives said. “A Blue Senate is very optimistic and could be a game-changer for Tesla and the entire electric vehicle industry in the United States, with a greener agenda certainly now in the cards for the next few years,” he said. written.
Ives also raised his bull case price target by 25%, from $ 1,000 to $ 1,250.
However, he reiterated his neutral rating he had on the Tesla since April 2019. For Wedbush, a neutral rating means that analysts expect the stock’s total return to match the median total return of the analyst’s coverage universe. Ives is listed with Business Software Analyst Wedbush, and other companies he covers include Apple Inc. AAPL
Uber Technologies Inc. UBER,
and Zscaler Inc. ZS,
which he considers to be outperforming.
Tesla stock is up 714.9% in the past 12 months to Thursday, while Apple shares are up 65.6%, Uber is up 62.6% and Zscaler is up by 249.8%. At the same time, the S&P 500 SPX index,
gained 15.4%.
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