Tesla Inc. TSLA,
could reach its target of 500,000 deliveries by 2020, a target that is not on the radar of Wall Street analysts, which returns in late spring / early summer due to force in China and the delay force in Europe and the US, Wedbush analyst Dan Ives wrote in a note released Wednesday. “Based on our initial analysis of global demand and delivery trajectory for Tesla in Q4, it appears that Musk & Co. they will easily exceed internal and street expectations “, Ives wrote. The analyst expects fourth-quarter deliveries to approach 190,000 to 200,000 than the 180,000 he called the “sand line.” “By the end of the year and in 2021, we see a major influence on the demand for electric vehicles globally, with our expectations that electric vehicles will increase from ~ 3% of total car sales today to 10% by 2025,” he said. Ives wrote. “We believe that this demand dynamic will disproportionately benefit the leader in Tesla’s electric vehicle category in the next few years, especially in the key region of China, which we believe could account for ~ 40% of its electric vehicle deliveries by 2022, given the current pace of sales. ” Ives expects a “visible” demand from China in 2021 and 2022 and said that Tesla Giga 3’s flagship footprint is a major competitive advantage because domestic companies such as BYD, Nio nil,
Xpeng XPEV,
and Li Auto Inc. LI
also “pull on all cylinders”. “If China stays on its current path for Tesla, Musk & Co. could reach one million delivery units globally by 2022 (we are currently shaping the timeframe for 2023),” he wrote. An additional boost could come in the form of an increase in EV credits under the administration of President-elect Joe Biden, he said. Wedbush rates Tesla as neutral, with a target price of $ 715 for 12 months and a $ 1,000 bull carcass. Tesla shares reversed early premarket losses to gain 1.1% and gained 696% in 2020, while the S&P 500 SPX,
gained 15%.