Tesla Inc. obtained another bullish endorsement on Friday from prolific Wedbush analyst Dan Ives, who raised his stock price target by 33% but will not yet recommend investors to buy the shares.
Ives said the “heart and lungs” of investors’ thesis on Tesla TSLA,
has focused on China, as consumer demand has skyrocketed until 2021, not just for Tesla’s Model 3, but for the electric vehicles of “impressive” domestic competitors like Nio Inc. NIO,
Li Auto Inc. LI,
and Xpeng Inc. XPEV,
He said that while competition is increasing, Tesla “remains the top of the EV mountain.” And given the “robust” global demand for electric vehicles, Ives now expects Tesla to exceed the million delivery threshold by 2022 and said deliveries could start approaching 5 million a year by the end of the decade.
“While there are more than 150 carmakers aggressively looking for the opportunity for electric vehicles around the world, right now in the electric vehicle market we believe it’s Tesla’s world and everyone pays rent,” Ives wrote. in a note to customers.
It raised its “base” price target for Tesla to $ 950, 12.4% above Thursday’s closing price, from $ 715. Its target is now the highest of the 37 analysts surveyed by FactSet and nearly doubles the average target of $ 498.66.
Tesla shares rose 0.5% in premarket trading. It fell 1.1% on Thursday, closing 4.0% below the Jan. 8 record close of $ 880.02.
Ives said Joe Biden as president and a Democratic-controlled Congress should also provide a headwind to the electric vehicle sector. “A Blue Senate is very bullish and can‘ change the game ’of Tesla and the electric vehicle sector in general in the United States, with a greener agenda that is now on the charts for years to come,” he wrote.
Ives also raised its “bull case” price target by 25%, from $ 1,000 to $ 1,250.
However, he reiterated his neutral rating he had at Tesla since April 2019. For Wedbush, a neutral rating means that analysts expect the total return on shares to be in line with the total return. medial of the analyst’s coverage universe. Ives is listed on Wedbush’s enterprise software analyst list, and other companies it covers include Apple Inc. AAPL,
Uber Technologies Inc. UBER,
and Zscaler Inc. ZS,
which values exceed.
Shares of Tesla shot up 714.9% in the last twelve months to Thursday, while shares of Apple rose 65.6%, Uber rose 62.6% and Zscaler rose 249.8 %. At the same time, the S&P 500 SPX index,
has gained 15.4%.