(electrek) Wedbush analyst Dan Ives has raised the Tesla price target from $1,100 per share to $1,400 per share, with a bull cause of $1,800, citing the growing electric vehicle market.
Ives says the EV market offers a $5 trillion market opportunity, with Tesla capable of controlling $2.5 trillion of it.
The analyst estimates that China will contribute about $400 per share to Tesla’s story next year. He says China will account for 40% of Tesla’s 2022 deliveries.
Ives sees the ongoing supply chain issues cutting Tesla’s Model 3 and Model Y production by up to 15%.
On Elon Musk’s soliciting Twitter views before selling stock, Ives says it was the right approach as the stock would have dropped by 15% if he didn’t. He believes Musk sold the shares due to pressure to pay taxes.
The analyst says his estimates are relatively conservative and rely on an EV penetration rate of only 10% in 2025 and 30% by 2030.
Ives, who is ranked in the top ten bracket of stock analysts globally, has an average success rate of 82% and a return of 41%.
TSLA: NASDAQ is up +0.69% on premarket.
