Tesla (NASDAQ:TSLA) has had its fair share of issues over the past few months, not least the indications of dwindling demand as was evident in Q4’s disappointing delivery numbers. However, going by a recent survey of Chinese EV consumers, it looks like the Tesla story could be getting back to winning ways.
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That is the conclusion reached by Wedbush analyst Daniel Ives after the investment firm set out to gauge sentiment among prospective EV buyers in China. More than 500 consumers participated in the survey, of which 76% said they are “considering” buying a Tesla in 2023. Domestic rivals BYD and Nio took second and third positions, respectively.
One of the main questions around Tesla right now is whether it can withstand the growing local competition in China, but the results offer an indication of the strength of its brand and offerings.
“Tesla remains the car of choice among EV buyers based on our survey,” says the 5-star analyst. “The unique brand, design of the Model 3/Y, and battery technology remain three core reasons that Chinese consumers are so positive on Tesla based on our research within Mainland China. With China representing the ‘hearts and lungs’ of the Tesla story, the continued success in this key region is the linchpin to the Tesla bull thesis in 2023 and beyond.”
Further bolstering the bull case, respondents were also unequivocally positive regarding the recent Model Y price cuts announced at the start of the year. The “smart strategic poker move” has “positively influenced” the decision of 70% of those surveyed, making them more likely to buy a Tesla Y. This offers proof the price cuts have been a “home run success out of the gates,” the analyst concludes.
All told, Ives rates TSLA stock an Outperform (i.e., Buy) to go along with a $175 price target. The implication for investors? Potential upside of ~22% from current levels. (To watch Ives’ track record, click here)
If there’s one certainty in the markets, it’s that Tesla will always get plenty of attention from the analysts. Tesla shares have 28 recent analyst reviews on record, breaking down to 17 Buys, 8 Holds, and 3 Sells. The stock is selling for $143.75 and its $187.32 average price target implies ~30% upside from that level. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
