Wedbush’s Tesla analyst, Daniel Ives, thinks that Tesla shares should have more charge left in the battery, Nasdaq reports. Ives raised the price target on TSLA from $715 to $950 and centered his thesis on China. Consumer demand for Tesla in China has grown exponentially.
Ives also noted overall enthusiasm for electric vehicles in China — EVs from Chinese startups Nio, Xpeng, Li Auto — and thinks that this requires an expectation readjustment about the market. “We have significantly raised our forecasts in our Wedbush Tesla Delivery Model with our expectations that Tesla now exceeds the 1 million delivery threshold in 2022 and could start to approach 5 million deliveries annually by the end of the decade if global EV demand continues at this pace,” the 5-star analyst said. “We believe overall that EVs, which make up 3% of global auto sales today, could reach 5% by the end of 2021 and 10% by 2025.”
Ives also counted “150+ automakers aggressively going after the EV opportunity globally,” and noted that the rising industry is “Tesla’s world and everyone else is paying rent.”
Further, the effects of the new Biden administration will have an impact on Tesla here in the US, especially now that it is backed by a Blue Senate and will have a focus on clean technology again.
“We believe while the impact of a Biden Administration taking the reigns in January (and a Blue Senate) will have wide reaching ramifications across all sectors — in particular, the focus on environmental issues and reducing the domestic carbon footprint could have a dramatic impact for EV vehicles in the near term,” Ives said.
Nasdaq pointed out that the rest of Wall Street will need further convincing and that the bears (TSLA’s critics and those betting against the stock) are in the “driving seat” as the average price target reaches $577.22 and hints at a possible downside of 32% in the year ahead. But then, the bears always tend to be critical and a bit down, and have a history of being wrong. TSLA is definitely not their jar of honey.
Past Forecasts & Criticism Make It Hard To Care About New Ones
From 2014 and on, many thought Tesla’s target to make 500,000 EVs would be impossible, especially by 2020. Despite all of the challenges of last year — not just for Tesla, but for most people on the planet — 2020 was the year for Tesla, and its stock to thrived while the company celebrated booming business and high demand.
The truth is that many critics, some of whom work in the media, believed that Tesla would have failed long before today. So, it is hard to have any faith in their opinions and forecasts at this stage.
I think that if Tesla continues at the speed it reached in 2020, we may just see that threshold of 1 million EVs delivered before 2022 — most likely at the end of the year. If not, I think we will see that number above 900,000 by the end of the year.
If you stop to consider that these are electric vehicles being made in this massive quantity by Tesla, which was just a small startup just a decade ago, it’s astounding to consider just how much Tesla has already impacted our environment in its push for sustainability.
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