Aly Song / Reuters
- Tesla’s mammoth rally through 2020 has room to run as demand rises in China and Battery Day arrives, Wedbush analyst Dan Ives said on Monday.
- The analyst raised its price target for Tesla shares to $ 1,900 from $ 1,800, implying a 15% jump to record highs close to Friday.
- The automaker is set to unveil battery technology and cost-saving advances at its September 22 Battery Day event – and such innovations could boost Tesla’s status as a third-party battery supplier, Ives said.
- He added that the rebounding demand in China has put the company back on track to reach its goal of 500,000 deliveries this year.
- Watch Tesla trade here live.
With battery day and demand recovering on the horizon, Tally’s 2020 rally may still be in its early days, according to Wedbush analyst Dan Ives.
The analyst on Monday raised its price target for the automaker’s shares to $ 1,900 from $ 1,800, while maintaining a “neutral” rating on the stock. The new 12-month target implies a 15% jump from close to Friday and would place stocks at record highs.
Ives’ Bullish outlook helped push shares higher. Tesla gained as much as 7.4% on Monday, setting a record high after reaching peaks in Friday’s session. Shares have risen just over 29% in the past four sessions as other analysts raised their price targets and ended Tesla’s Battery Day event on September 22nd.
Read more: Inside Eagle Investors, the 20,000-member online community run by 2 Indiana University students helping to spearhead the Gen Z-day revolution
Elon Musk is set to reveal a host of “technology-changing” battery technologies during the event, Ives said. Such innovations are critical for Tesla, which maintains a lead in the electric car segment. Analysts think the motorist could announce a battery cell of 1 million miles.
If Tesla can also disclose improvements in production costs on Battery Day, the company could transform into a top battery supplier and expand its overall addressable market, Ives said.
Increasing demand for cars in China also drove Ives’ goal increase. Wedbush expects sales in the country to accelerate by the end of the summer as Tesla boosts Model Y production in Shanghai. Price cuts in the U.S. and China could further boost demand as the global economic background improves and lockdowns are lifted, Ives said.
Read more: Charles Schwab’s stock-picking chief told us why a COVID-19 vaccine would trigger a mass exit of tech stocks – and found 3 companies that would profit instead
He added that China’s demand was the “linchpin of success” for Musk and Tesla and that the company was on track to reach its lofty target of 500,000 deliveries for the year.
“In a neutral, the success in China remains a ‘paradigm shift’ for its EV penetration story over the next decade,” Ives said.
Tesla closed Friday at $ 1,650.71, up about 298% year-on-year.
Read more Markets Insider and Business Insider brands now:
Joe Biden officially accepts the Democratic nomination this week. RBC says it buys these 47 stocks that speak to each sector that is ready to crush the market if it wins in a wave election.
A Wall Street chief strategist says he is considering buying dirty cheap ‘powerful microcap’ shares, which have done even better than their big-cap peers since the coronavirus crash
Goldman Sachs Sets 4-Quarterly Income Themes to Shape the Future of the Economy
Markets Insider
.
