Tesla Inc. received a positive recommendation again on Friday from Danbis, a productive analyst at Wedbush, which raised its share price target by 33%, but he will still not recommend that investors buy the stock.
Ives said the ‘hearts and lungs’ of investors’ dissertation on Tesla TSLA,
is focused on China, as consumer demand skyrocketed until 2021, not only for Tesla’s Model 3s, but also for electric vehicles from ‘impressive’ domestic competitors such as Nio Inc. NIO,
Li Auto Inc. LI,
and Xpeng Inc. XPEV,
He said that although competition was increasing, Tesla remained “the top of the EV mountain.” Given the ‘robust’ demand worldwide for EVs, Ives expects Tesla to now exceed the 1 million delivery threshold in 2022, saying deliveries could approach 5 million a year by the end of the decade.
“Although more than 150 carmakers worldwide are aggressively attending the EV event, we in the EV market believe it is Tesla’s world and everyone pays rent,” Ives wrote in a note to customers.
He raised his ‘base’ price target for Tesla to $ 950, which is 12.4% above Thursday’s closing price, of $ 715. His target is now the highest of the 37 analysts surveyed by FactSet, and almost double the average target of $ 498.66.
Tesla’s share rose 0.5% in pre-trading. It fell 1.1% on Thursday, to 4.0% below the January 8 record of $ 880.02.
Joe Biden as president and a Democratic Congress should also provide a store wind for the EV sector, Ives said. “A blue Senate is very positive and a potential ‘game changer’ for Tesla and the overall EV sector in the US, with a more green-driven agenda that is definitely on the map for the next few years,” he said. writing.
Ives also increased its bull case price target by 25%, from $ 1,000 to $ 1,250.
However, he reiterates his neutral rating he has had on the Tesla since April 2019. For Wedbush, a neutral rating means that analysts expect the total return of the stock to perform in line with the median total return of the analyst’s coverage. Ives is listed with Wedbush’s operating software analyst, and other companies it covers include Apple Inc., AAPL,
Uber Technologies Inc. UBER,
and Zscaler Inc. ZS,
which he performs as better.
Tesla’s share has risen 714.9% over the past 12 months to Thursday, while Apple’s shares have risen 65.6%, Uber’s 62.6% and Zscaler’s 249.8%. At the same time, the S&P 500 index SPX,
achieved 15.4%.