With just days left in the last quarter of a wild year, Tesla’s stock price (TSLA) is climbing and investors are anxiously waiting to see if the EV giant will in fact hit a half million vehicles delivered by the end of 2020. While we wait, Wedbush analyst Dan Ives believes Tesla will exceed expectations.
In October, a leaked email from Elon Musk to Tesla employees, revealed the company’s primary goal to increase production by almost 20% by the end of the year with 500,000 units manufactured. An accomplishment that has been a long-time goal for the automaker.
When looking at the first three quarters of 2020, Tesla will have to manufacture around 170,020 units throughout the fourth quarter. A production increase of 17.2% concerning the third quarter, which was a personal record for the firm with 145,036 units.
Wedbush analyst Dan Ives believes Tesla will deliver between 190,000 to 200,000 vehicles in Q4 in a new note to clients on Wednesday: “Based on our initial analysis of demand and the delivery trajectory globally for Tesla in 4Q, it appears Musk & Co. will likely handily exceed Street and internal expectations.”
It wouldn’t be the first time Tesla shocked the automotive industry with record breaking numbers, and Tesla CEO Elon Musk is still confident in the companies ability to do so. He said in an email to employees last weekend: “Please go all out to make it happen. This is a great milestone to rally the company around achieving. All the critics who, as recently as two years ago said that we’d never make it, also called our target of half a million in 2020 “impossible”. The heck with them, we are doing it!”
Ives also commented on Tesla’s future business in China: “We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years especially in the key China region which we believe could represent ~40% of its EV deliveries by 2022 given the current brisk pace of sales.”