Shares of Tesla Inc. rose to a second straight record on Monday, following Wedbush analyst Dan Ives’ goal to rise to the fourth-highest on Wall Street, with signs of a faster demand in China.
But while its target represents a 15% rally above Friday’s record high of $ 1,650.71, Ives has not yet advised investors to buy the stock.
Tesla shares climbed 5.5% in the morning trading, to extend the rise of 20.1% in the previous three sessions, following the announcement of the 5-for electric car manufacturer’s announcement -1-stock split.
Do not miss: Tesla’s share leads to a 5-1 split.
Ives raised its price target to $ 1,900 from $ 1,800. Of the 35 analysts surveyed by FactSet, Ives’s target is now only below Piper Sandler’s $ 2,400 target, Oppenheimer’s Colin Rusch’s target of $ 2,209 and Everbright Securities’ $ 1,903.97 target. Jing Ni.
Ives’ “base” target is well above the average target of $ 1,235.37, which is 25.2% below Friday’s closing price. Meanwhile, Ives’ ‘Bull Case’ goal is $ 2,500.
Meanwhile, he reiterated the neutral rating he had on stock since April 25, 2019. At that time, his price target was $ 275.
“We continue to believe [electric vehicle] demand in China starts 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 price that [Chief Executive Elon] Musk and Tesla are laser-focused on capture, ”Ives wrote in a research note.
Giga 3 is the factory that Tesla operates in Shanghai.
“We’re seeing more leverage in the story now on the horizon from Giga 3 along with some price cuts in both the US and China that could further boost demand as the macro begins to improve and the conditions for lockdown worldwide. easier, “Ives wrote.
He expects Tesla to announce a number of new potential “game-changing” battery developments at the Battery Day company, scheduled for Sept. 22, including a “million-mile” battery.
“In theory, this battery will support an electric car for 1 million miles and be a big step forward if you compete against it. traditional gasoline-powered competitors of cars of both a [return on investment] and environmental perspective, ”Ives wrote.
Tesla’s share has more than doubled in the past three months (118.0%), while shares of China-based rival Nio Inc. NIO,
have quadrupled the S&P 500 SPX index (up 301.6%),
has risen 18.1%.
At the same time, Ives’ price target has more than tripled, as his May 17 price target was $ 600.
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