Why Tesla stock may be heading for $ 1,800: analyst
Tesla’s shares (TSLA) have a clear shot for more fruitful reasons, claims longtime bullish analyst Dan Ives at Wedbush.
“Demand for China is the mainstay. As capacity builds in Berlin and Austin, that’s what I think sends Tesla’s shares to $ 1400 as a base case. Our bull case is $ 1800,” Ives told Yahoo Finance Live. Ives considers Tesla to be Outperform, and is one of the most positive analysts on the street at the electric car manufacturer.
Tesla shares traded at $ 1080 at the time of writing.
Ives’ solid price target on Tesla’s share is a function of two factors.
First, Ives estimates that 40% of Tesla̵[ads1]7;s deliveries in 2022 will come from the lucrative China market. And two, the supply chain problems (namely, semiconductor shortages) that have plagued carmakers this year will subside in 2022. For its part, Tesla will surprise the street by delivering nearly 1.5 million units by the end of the year.
The return to the focus on Tesla’s fundamentals would be welcome news for the automaker’s bulls.
Tesla shares came under pressure in December when CEO Elon Musk sold down his stake in the company to meet tax obligations. Musk has sold approximately 15.6 million shares for a shadow over 16 billion dollars, which brings him close by unleashing 10% of the stake in the company as planned.
Despite the recent pressure on Tesla’s shares, Ives is not alone in staying rosy at the company ahead of 2022.
“All in all, with significant volume, cost and operating power momentum, we continue to see large upside expectations for 2022 consensus expectations, depending on the execution of new factories and bottlenecks in the supply chain. In the long term, we believe Tesla’s impressive path to battery technology, capacity and costs will continue to accelerate the world’s transition to electric vehicles and significantly expand Tesla’s management, which should also enable Tesla to continue to expand its operating margins, probably above 20% over the next few years, which represents the very best performance in classes, “said Deutsche Bank analyst Emmanuel Rosner.
Rosner considers Tesla a purchase with a price target of 1000 dollars.
Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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