Tesla Bull Case at $1,350 a Share: Wedbush
The opening of the Fremont factory and the strengthening of Model 3 demand out of China are key catalysts that can push Tesla’s stock to $1,350, according to Wedbush Securities. The firm’s analyst Dan Ives lifted his bull case scenario price target by 35%, up from $1,000. The firm raised its base case price target to $800 from $600, and maintained a NEUTRAL rating.
China growth worth $300 per share to Tesla stock: Ives said in his recent report that “strong Model 3 demand out of China remains a ray of light for Tesla in a dark global macro and appears to be on a run rate to hit 100k unit deliveries in the first year out of the gates for Giga 3.” Given expectations for Tesla to increase its penetration into China’s electric vehicle market in the next 12-18 months, Ives believes the growth story in the country is equal to $300 per share to Tesla.
Tesla the EV King: Tesla’s sales in China hit a record high in March despite COVID-19, and it represented 25% of the country’s EV sales during the month. Elon Musk & Co. pulled this off even though auto sales in China, the biggest auto market in the world, were down more than 40%.
Price cuts: Tesla is slashing prices of the Model 3, Model S, and Model X in North America, according to Electrek. The cost of the Model 3 will be trimmed by $2,000 across all versions, while the Model S and X will be reduced by $5,000. Ives said price cuts both in the U.S. and China could further stimulate demand.
Heat check: Shares of Tesla are on fire. The stock is up more than 300% over the last year. That’s more than quadruple what it was worth 12 months ago when it traded below $200 a share. It seems nothing can stop bullish investors under the spell of Elon Musk.
