Wedbush Securities has its prospects for Tesla Inc. improved, following stronger-than-expected quarterly deliveries.
On Sunday, Wedbush raised its price target for Tesla TSLA,
up to $ 1,000 per share from $ 950, with a long-term price fall price of $ 1,300 per share. Tesla shares closed at $ 661.75 on Thursday (markets closed on Friday).
Wedbush analyst Daniel Ives also changed his rating from hold to better than performance. “In our view, the 1Q delivery numbers released were a paradigm changer,” he said in a note.
On Friday, Tesla reported deliveries in the first quarter, and the power of attorney for sales, a total of 184,800 vehicles, blew past the FactSet consensus of 168,000. The manufacturer of electric vehicles in Silicon Valley said it produced just over 180,000 vehicles during the period, which Ives called a ‘drop the mic’ number.
“We now believe that Tesla could exceed the deliveries of 850,000 for the year with a stretch target of 900,000, despite the scarcity of chips and various issues in the supply chain in the automotive sector,” Ives said. He added that a striking number of deliveries coming from China cannot be ignored with the trajectory at the rate of by 2022 ~ 40% of deliveries for Musk & Co. to represent. ‘
Ives and his team also see Tesla’s profitability improve significantly over the next three to four years.
Tesla shares have fallen 6.2% so far, but have risen 628% over the past 12 months.