Tesla TSLA Gets PT Boost to $1,400 from Wedbush, Highest on Street

Wedbush analyst Daniel Ives raised his price target for Tesla (NASDAQ: TSLA) shares to $1,400 amid the signing of a new EV funding bill. Wedbush's price target is the highest on Wall Street.

Wedbush analyst Daniel Ives raised his price target to $1,400 from $1,000 in a note to investors late Thursday. This was due to the fact that the U.S. House of Representatives passed a reconciliation bill that includes EV credits for Tesla and other EV makers, according to Investors.

Ives wrote that China remains the core of the Tesla thesis. The firm estimates China will account for 40% of Tesla's deliveries in 2022. Wedbush believes Tesla is "on a (roughly) 50k monthly run-rate for China into 2022." This is based on the fact that in October Tesla Giga Shanghai was able to deliver over 54,000 vehicles, almost 41,000 of which were exported.

Wedbush analysts estimate Tesla's sales in China are worth $400 a share for 2022. Ives maintained his Outperform rating on Tesla stock and recently lifted his bull-case price target to $1,800.

"The chip/component shortage remains a headwind for Tesla (and every other automaker). However we view this as a transitory issue with our core focus on Model 3 / Y demand, which is outstripping supply by roughly 15% as of today," Ives said.

The analyst also believes the car/software market could hit $5 trillion, and Tesla is likely to own $2.5 trillion of that pie.

The House on Friday passed a massive tax-and-spending reconciliation bill that would include expanded tax credits, with Tesla and other EV manufacturers once again eligible. The bill would provide tax credits of up to $7,500 on the purchase of electric vehicles.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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