Tesla Price Target Rises to $2000

According to Wedbush analyst Dan Ives, Tesla saw its price target rise from $1,000-$1,250 to $2,000 thanks to a strong demand coming out of China. Despite all the restrictions put in place due to the Coronavirus pandemic, Tesla was able to achieve stronger than expected delivery result during the second quarter of 2020. “We believe that the China growth story is worth at least $300 per share and $400 in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3 (million-mile battery remains an elusive goal now in the grasp in our opinion),” Ives said also stated that demand for the company’s Model 3 out of China “remains a ray of shining light for Tesla in a dark global macro.”

In a note to clients, Analyst Dan Ives said of Tesla’s Q2 delivery figures released Thursday “we’re well ahead of expectations given the bleak COVID economic backdrop in a performance we would characterize as a ‘major home run’ speaking to its Teflonlike business model.” 

Tesla shares were up 9% to $1,225 in early trading on Thursday and as The Next Avenue reported, Tesla became the world’s largest automaker by market cap on Wednesday, beating Toyota for the second time. 

Deliveries of the Model 3 and Model Y hit 80,050 in the second quarter, while Model S and Model X deliveries clocked in at 10,600, for a grand total of 90,650. Prior to the shutdown of factories caused by the global pandemic, Tesla stated that it planned to “comfortably” deliver 500,000 vehicles by the end of 2020. “In our opinion, a 90k delivery number in this COVID lockdown environment is a jaw-dropper and the bulls will run with this as a potential paradigm changer moving ahead,” Ives said. “China appeared to be the star of the show and was a major source of strength in 2Q based on our analysis and industry data.” 

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