Tesla starting next phase of bull run despite Elon Musk's 'bizarro' Twitter poll - Wedbush analyst

Nov. 08, 2021 3:36 PM ETTesla, Inc. (TSLA)F, GM, LCIDBy: Brian Stewart, SA News Editor81 Comments
  • Wedbush Securities managing director Dan Ives said Monday that Telsa (NASDAQ:TSLA) has reached a "tipping point" over the past week that has sent it into the next phase of growth that could see the stock reach $1,800, suggesting a rally of nearly 52% from current levels.
  • Speaking to CNBC, Ives argued that Elon Musk's "bizarro soap opera" Twitter poll over the weekend, in which he asked his followers to vote on whether he should sell 10% of its TSLA holdings to pay taxes, represents a "blip of the radar" of an otherwise upward trajectory for the electric vehicle maker.
  • "I don't think [the recent stock rally for TSLA] is a pull forward. I think this is just starting the next phase of the Tesla bull thesis," he said.
  • Outlining what conditions will help bring TSLA from its current levels of around $1,180 to the $1,800 mark, Ives pointed to the Chinese market as one area that will drive growth for the company.
  • He estimated that China alone could account for $300-$400 in price appreciation for TSLA shares.
  • Ives also highlighted the growth prospects for the EV market in general, estimating an eventual $5T size.
  • The Wedbush analyst estimated that EVs could more than triple their share of the total auto market in the next two to three years. He sees today's 3% fraction of the market turning into 10% within that timeframe.
  • As to the possibility that Musk would sell the shares contemplated in his Twitter poll, Ives called this liquidation "a containable amount."
  • TSLA has staged a substantial rally over the past month, climbing from less than $800 in early October to an all-time high of $1,243.49 late last week.
  • On Monday, the stock slid about 3% in intraday trading on worries about Musk's potential stock sale. The slide took TSLA to $1,183.31 at about 3:30 PM ET.
  • TSLA has advanced nearly 57% over the past month, substantially outpacing legacy automaker Ford (NYSE:F), which had a good month on its own, with an advance of nearly 35%.
  • Both have left General Motors (NYSE:GM) far behind, with that stock posting a monthly gain of nearly 8%.
  • Still, even with its massive jump in the last few weeks, TSLA remains behind EV startup Lucid (NASDAQ:LCID), which has jumped about 74% since early October:

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