Tesla Motors, Inc. (NASDAQ: TSLA) – Tesla analysts anticipate reconciling approach to Chinese regulators, EV ‘Golden Age’ ahead

Tesla Ing (NASDAQ: TSLA) has been warned by China’s state administration for market regulation regarding quality issues related to EVs sold in China.

A Wedbush analyst sees the issue as a lightning bolt on Tesla’s radar and instead focuses on the carmaker’s overall picture.

The Tesla analyst: Daniel Ives maintained a neutral rating on Tesla with a price target of $ 950, with a bull case target of $ 1,250.

The Tesla dissertation: Tesla’s approach to adopting a more conciliatory tone with China is encouraging, Ives said in a Tuesday letter.

A disagreement with Chinese regulators will be the last thing a Tesla investor wants to see, as the company’s sales in China more than doubled in 2020 despite the COVID-19 pandemic and are on track to reach around 40 % of its sales. by 2022, the analyst said.

Related link: Tesla gets $ 1,200 street height price: ‘Fireworks aren’t over yet’

The regulatory agency gave Tesla a slap on the wrist and urged the company to focus on strengthening internal management around quality control in the country.

“As such, Tesla has ‘sincerely accepted the leadership of government departments and reflected deeply on shortcomings’, a smart move rather than fighting any issues,” Ives said.

Tesla should navigate any quality and regulatory issues in China in the coming months as a “golden era” of EVs is imminent, the analyst said.

“With some built-in memories and quality issues for Tesla, we believe it’s more ‘growing pains’ as the company sees an EV trajectory, even beyond the expectations of bull cases for 2021 in this important region.”

TSLA Price Action: Tesla shares slipped 2.32% to $ 843.41 with the last check.

Related link: Tesla apologizes to China State Power Company for viral video

Photo courtesy of Tesla.