Tesla on watch after deliveries beat, Wedbush upgrade

• Tesla (NASDAQ:TSLA) is on watch for a big share price pop tomorrow after the company topped Q1 deliveries estimates.
• The deliveries update also prompted a weekend upgrade from Wedbush Securities on Tesla to an Outperform rating.
• Analyst Dan Ives: "In our opinion the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla's Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway. We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector. While the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning on the Street and the eye popping delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent ~40% of deliveries for Musk & Co. by 2022."
• Ives and team believe Tesla's profitability-free cash flow profile significantly improves over the next three to four years and forecasts $20 of annual EPS potential by 2026.
• In what could be a big development for the whole EV sector, Wedbush also expects the U.S. EX tax credit ceiling to be removed.
• Wedbush's price target on Tesla is lifted to $1,000 and a long-term bull case PT of $1,300 is set. The stock is listed by the firm as a top pick of the Green Tidal Wave thesis. Tesla closed on Friday at $661.75.
• Last week: Apple reportedly to use Tesla batteries to help light up its headquarters.