Tesla Inc (NASDAQ: TSLA) is still the leader among the electric vehicle package, although competition in space is intensifying, according to Wedbush Securities.
Tesla analyst: Wedbush analyst Daniel Ives maintained his neutral rating at the automaker and raised the 12-month target price from $ 715 to $ 950. The analyst set a high cash target of $ 1,250, above the previous target of $ 1,000.
Tesla’s Thesis: The automaker led by Elon Musk now exceeds the one million delivery limit in 2022 and could approach five million deliveries annually by the end of the decade, if global EV demand keeps the current pace, Ives wrote in a note in the Thursday.
“We believe that, in general, EVs, which represent 3% of global car sales today, can reach 5% by the end of 2021 and 10% by 2025,” he said.
Ives called Tesla’s competitors Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV), and Li Auto Inc (NASDAQ: LI) in the main Chinese market as “impressive”.
“There are more than 150 automakers aggressively pursuing the EV opportunity worldwide, right now, in the EV market, we believe it is the world of Tesla and everyone is paying rent.”
Wedbush expects 40% of Tesla’s overall delivery sales to come from China, followed by Europe and the United States
“We believe that China’s growth story is worth at least $ 100 per share in a bull case for Tesla, as this EV penetration is set to increase significantly over the next 12 to 18 months, along with major innovations from battery coming out of Giga 3. ”
Other positive points for the Palo Alto, Calif.-Based automaker include a Biden White House and a Blue Senate. Democratic control over the Senate is a “game changer,” according to Ives.
See also: Tesla achieving $ 2T valuation in 2 years? Here’s what inspires Daniel Ives’ optimistic target
The increase in EV tax credits and consumer incentives, together with government support, is a positive factor for Tesla, General Motors Company (NYSE: GM), Amazon.com, Inc (NASDAQ: AMZN), supported by Rivian and Fisker Inc (NYSE: FSR), according to analyst.
Tesla price action: Tesla shares closed 1.1% down at $ 845 on Thursday and gained 0.35% after-hours.
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Most recent reviews of TSLA
| Meeting | Company | Action | In | For |
|---|---|---|---|---|
| January 2021 | Edward Jones | Starts coverage in | Wait | |
| January 2021 | Swiss credit | Keeps | Neutral | |
| January 2021 | Evercore ISI Group | Updates | Low performance | On the line |
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