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Tesla Soars 11% After Wedbush Ramps Up PT On China Demand
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Tesla Soars 11% After Wedbush Ramps Up PT On China Demand

Shares of Tesla gained 11.2% on Monday and surpassed the $1,800 mark for the first time after Wedbush increased the stock’s price target, while reiterating a Hold rating.

Wedbush analyst Daniel Ives lifted Tesla’s (TSLA) stock price target to $1,900 (3.5% upside potential) from $1,800, even as shares already rallied 339% this year. Ives said “We continue to believe EV demand in China is starting to accelerate in July/August with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing.”

The analyst added “We are seeing more leverage in the story now on the horizon out of Giga 3 along with some price cuts both in the US and China that could further stimulate demand as the macro starts to improve and the lockdown conditions ease globally. We believe Tesla thus far in 3Q has seen strong demand in Europe and China with the US market remaining softer.”

Looking ahead, Wedbush expects Tesla to announce a number of new potential “game changing” battery developments at its Battery Day on
Sept. 22.

“In theory this battery will support an electric vehicle for 1 million miles and be a major step forward when competing vs. traditional gasoline powered automotive competitors from both an ROI and environmental perspective,” Ives said.

Currently, the rest of the Street is sidelined on the stock. The Hold analyst consensus is based on 15 Holds, 4 Buys, and 9 Sells. The average price target of $1,295 implies downside potential of about 29.5% to current levels. (See TSLA stock analysis on TipRanks).

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