This post was originally published on this site
Tesla Model Y
AFP via Getty Images
Shares of Tesla Inc. rallied Monday, after Wedbush analyst Dan Ives boosted his base-case price target, and said he envisions a scenario in which the electric vehicle market leader’s stock reaches $1,000.
The stock TSLA, -1.93% jumped 1.4% in premarket trading. That puts it just shy of he Nov. 19 record close of $499.27.
Ives raised his base-case stock price target to $560 from $500, while reiterating the neutral rating he’s had on Tesla since April 2019.
But Ives raised his bull-case price target by 25%, to $1,000 from $800.
“With the sustained path to profitability and S&P 500 index inclusion achieved, the Tesla bull story is now all about a stepped up EV demand trajectory into 2021,” Ives wrote in a note to clients.
Don’t miss: Tesla to join S&P 500, stock surges.
Also read: Tesla stock higher after ‘best quarter’ ever for the Silicon Valley car maker.
And he said he is now seeing “a major inflection of EV demand globally, with expectations that EV vehicles ramp from the current 3% of total auto sales to 10% by 2025.
“We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years especially in the key China region which we believe could represent ~40% of its EV deliveries by 2022, given the current brisk pace of sales with 150K+ deliveries in its first year out of the gates with Giga 3,” Ives wrote.
He said that while the lower-priced Model 3 remains Tesla’s core driver, the new designs around the Cybertruck and Model Y crossover SUV should help the company achieve its million-delivery target by 2023, with 2022 not out of the question.
The stock has gained 26.2% so far this month through Friday, and soared 485.2% year to date, while the S&P 500 SPX, -0.67% has gained 10.1% this year.
