- Wedbush Securities lifts its bull case price target on Tesla (NASDAQ:TSLA) after factoring in the China business upside.
- "We believe the production and demand trajectory in China for Tesla remains robust and stronger than expected for 3Q with clear momentum heading into year-end. The pent-up demand in the China EV market for Model 3's and recent price cuts are creating a "perfect storm of demand" for Musk & Co. in this key market with increased market share vs. domestic competitors as the Giga 3 success story continues to play out," advises analyst Dan Ives.
- Wedbush has a base case price target of $1,900 on Tesla and bull case price target of $3,500. Ives says the China growth story is worth at least $400 per share on Tesla on what he expects to be a significant increase in EV penetration in the region. "With the China growth story, Tesla could now have $35+ of earnings power by 2025/2026 vs. our prior estimate of $20-$25," he calculates.
- Shares of Tesla are up 2.82% premarket to $2,107.75 in premarket action.
- Tesla'a Quant Rating of 3.49 ranks 2nd in the automobile manufacturer sector.