Demand from China could help Tesla exceed its 500,000 delivery target, says a Wall Street tech analyst who sees the stock soaring as much as 56%
Model 3 vehicles made by Tesla China are on display during a delivery event at its Shanghai facility
- Wedbush’s Dan Ives said demand from China could help Tesla surpass its once implausible annual delivery target of 500,000 vehicles.
- Tesla saw robust demand in China, selling around 22,000 Model 3 vehicles in China in November. If the momentum continues, the EV maker is likely to achieve its goal, Ives said.
- Tesla reiterated its goal of 500,000 deliveries in 2020 in its third-quarter profit call, albeit a few Analysts were skeptical it would be able to hit that target.
- Ives sees Tesla rising 56% from the current $ 1,000 in its bull case scenario.
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China could be the golden goose for Tesla.
According to Dan Ives, a senior tech analyst with Wedbush Securities, the customer said in a statement to customers on Sunday that demand from China could help or potentially help Tesla meet the once implausible target of 500,000 shipments by the end of 2020 surpass. Ives sees Tesla soaring sharply 56% from its current level to $ 1,000 per share in its bull-case scenario.
The analyst said that Tesla has continued to see robust demand in China. Should this continue into December, the EV manufacturer could exceed its delivery target. In November, Tesla sold around 22,000 Model 3 vehicles in China.
“We believe the company has another strong month ahead of them in China in December, which could be the tipping point for Musk & Co. to meet / exceed its annual delivery target of 500,000, an accomplishment it doesn’t going back once on the map for the road is the late spring / summer timeframe, “said Ives.
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Tesla reiterated its goal of 500,000 deliveries in 2020 in its third-quarter earnings call, though some analysts were skeptical that the company could meet its target.
“The growth story in China is worth at least $ 100 per share to Tesla in a bull case, as that EV penetration will increase significantly over the next 12 to 18 months, along with key battery innovations from Giga 3 and other parts of China’s EV supply chain “added the analyst.
Tesla shares closed nearly 5% on Monday at $ 639 per share. The stock is up over 660% since the start of the year.