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Dan Ives, Wedbush's CEO, reiterated Friday his $1,000 12-month target for Tesla.
Analysts expect a variety of concerns, including the shortage of chips and PR problems in China, to ease.
He believes Telsa's stock will benefit from the "green tidal" of EV demand over the next five-years.
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One of Wall Street’s most prominent Tesla investors is increasing his optimism about the stock, despite 2021’s disappointing performance.
Wedbush's Dan Ives, a Wedbush analyst, reiterated his 12-month price target for $1,000 for the electric vehicle manufacturer's stock in a Friday note to clients. This represents a 32% increase from current levels.
Tesla only managed a 3% increase this year after a record-breaking rally of 740% in 2020. Ives cited a variety of factors for the low performance, including the safety concerns in China, regulation concerns and rising competition from electric vehicles.
Ives stated, "That being said, we see the forest through the trees and believe Tesla has a few growth levers into 2022 which should accelerate growth. With global EV demand further inflecting over 12 to 18 months." We believe that there are many winners in EV arms races to play this transformative growth opportunity, including traditional stalwarts as well as pure play EV OEMs/supply chains plays with Tesla front-and-center.
Ives long believed that China's demand is the key to Tesla's growth. The 2021 year has been a difficult one for the EV maker. It was marred by a fatal accident, safety recalls and Elon Musk having to deny reports that China had banned its cars.
Ives says that the headwinds in China are starting to reverse and Tesla will be able to deliver 900,000.000 annually in 2021. He sees electric vehicles representing 3% of global automobile industry, but that number growing to 10% in 2025 as countries reduce carbon emissions. He said that this will lead to a surge in demand for electric cars, which will benefit Tesla's stock.
The analyst explained that the shortage of semiconductor chips is a short-term issue that the company will be capable to resolve.
Tesla shares fell 0.15% Friday, just after the opening bell.